practice real estate test
Linus is buying Lucy's home, which was built in 1968. Which addendum must be attached to the standard NCAR/NCBA Offer to Purchase and Contract?
Lead-Based Paint or Lead-Based Paint Hazard Addendum
Ad valorem refers to a tax that is based on the assessed value of property. charged by the county to transfer a deed when property sells. a percentage of a property's sale price. a percentage of someone's income.
based on the assessed value of property.
If a broker who is not an attorney drafts a real estate sales contract, it is referred to as the unauthorized practice of law. practice of real estate. procedure of law. professional practice.
practice of law.
A real estate sales contract may be referred to as a(n) installment land contract. purchase agreement. option agreement. right of first refusal.
purchase agreement
A buyer and seller have entered into a binding contract using the standard Offer to Purchase and Contract. Closing is scheduled for December 7, but the buyer's current lease ends on November 30. If the seller agrees to allow the buyer to take possession of the property on November 30, what addendum should they use?
Buyer Possession Before Closing Agreement
The standard addendum that calls for the buyer to maintain the property and make a nonrefundable rent payment when the buyer takes possession of the property before the deed is recorded is the
Buyer Possession Before Closing Agreement.
Which of these contract provisions appears in both the Offer to Purchase and Contract—Vacant Lot/Land Standard Form 12-T and the Offer to Purchase and Contract Standard Form 2-T?
Buyer's Due Diligence Process
If someone does not pay their property taxes on time, on which date does interest begin accruing? September 2 of the current tax year. October 1 of the current year. January 1 of the following year. January 6 of the following year.
January 6 of the following year.
Which statement regarding radon is FALSE? Radon can contribute to health issues such as asthma, diabetes, or birth defects. Radon enters a home through the ground. Radon is a gas that forms as a result of uranium decay. Radon is a gas that is formed from poor furnace maintenance.
Radon is a gas that is formed from poor furnace maintenance.
Which contingency clause is included in the NCAR/NCBA Offer to Purchase and Contract? an appraisal contingency a financing contingency an inspection contingency The Offer to Purchase and Contract does not include any appraisal contingency, financing contingency, or inspection contingency.
The Offer to Purchase and Contract does not include any appraisal contingency, financing contingency, or inspection contingency.
Developer Lenny purchased 20 acres and had an engineer/land planner survey and draw up a plan, subdividing the land into 20 residential lots and two streets. The plan indicates the dimensions and number of each lot, the required setbacks, and the location of easements for utilities. What is this document commonly called? a master plan a plat a PUD a topographic survey
a plat
A property described by lot and block number is part of a development. government survey. recorded deed. recorded plat.
recorded plat.
Which is TRUE regarding a seller's requirements? According to North Carolina's property owner's disclosure, mold must always be disclosed. According to North Carolina's property owner's disclosure, formaldehyde that affects a property must be disclosed. Federal law requires disclosure of asbestos. Radon at any level is a material fact that must be disclosed.
According to North Carolina's property owner's disclosure, formaldehyde that affects a property must be disclosed.
A broker must conduct all brokerage activities under an agency agreement without regard to the parties' race only. race, color, religion, age, sex, national origin, or handicap. race, color, religion, sex, national origin, handicap, or familial status. race, color, religion, sex, national origin, handicap, or marital status.
race, color, religion, sex, national origin, handicap, or familial status.
Which real estate lien takes priority over all other liens? mortgage lien mechanic's lien real property tax lien federal income tax lien
real property tax lien
Anna has always dreamed of owning a pottery shop. She buys a piece of property on the edge of a suburb where several new subdivisions are being built and begins to save money for the building. When she finally saves enough money to build the shop, she finds out that the area is zoned residential. What can she do? request a special exception request spot zoning request to be grandfathered in request a use variance
request a use variance
All of these are examples of things that might be paid for with a special assessment tax EXCEPT A.ornamental streetlights. B.school operating costs. C.sewer repair. D.sidewalk replacement.
school operating costs.
All the following are health problems that can be caused by asbestos exposure EXCEPT severe asthma. mesothelioma. lung cancer. asbestosis.
severe asthma.
In North Carolina, special uses of a property are permitted following approval of what type of permit application? alternate-use exceptional-use general-use special-use
special-use
Which of the following items are considered personal property? garage door openers and controls light fixtures stand-alone refrigerators window blinds
stand-alone refrigerators
Under the NCAR Exclusive Right to Sell Listing Agreement, a seller is required to disclose all of the following EXCEPT the amount of the earnest money deposit. any known proposed or confirmed special assessments. any mobile homes on the property. the presence of any fuel tanks on the property.
the amount of the earnest money deposit.
In North Carolina, the tax rate is expressed as $1 per $100 of assessed value. $1 per $1,000 of assessed value. mills. percent of assessed value.
$1 per $100 of assessed value.
Belinda's property has a market value of $100,000 and was assessed at 90%. The tax rate is $1.50 per $100 of assessed value. What would Belinda's annual tax amount be? $350 $1,350 $3,500 $9,000
$1,350
A property with a market value of $220,000 is assessed at 100%. The annual taxes are $3,124. What is the tax rate per $100? $1.42 per $100 $4.21 per $100 $7.04 per $100 $14.20 per $100
$1.42 per $100
Seller Oliver agreed to pay 6% of the sales price of his house, equally split between the listing broker and the selling broker. Hilltop Realty earns a commission of $6,750 when its client buys Oliver's house. Calculate the sales price of the property. $40,500 $112,500 $225,000 $405,000
$225,000
A property has a market value of $360,000 and was assessed at 100%. The tax rate is 12 mills of assessed value. What is the annual tax amount? $300 $432 $3,000 $4,320
$4,320
A North Carolina county has a tax rate of $1.85 per $100. What is the annual tax amount if the assessed value of the property is $362,000 (rounded)? $670 $1,956 $5,110 $6,697
$6,697
Violet has qualified for a North Carolina Homestead Exclusion based on her age. This means she is at least 70 years old. 65 years old. 60 years old. 55 years old.
65 years old.
Which government act is responsible for the establishment of the Superfund? CERCLA CLARA CWA SARA
CERCLA
Each of these is an example of involuntary alienation EXCEPT ABC Bank forecloses on a property for nonpayment of a loan. Bob claims title to property through adverse possession. Calvin dedicates property to the city for a park. The state takes property through eminent domain to build a freeway.
Calvin dedicates property to the city for a park.
Which paragraph is omitted from the Offer to Purchase and Contract—Vacant Lot/Land Standard Form 12-T because it does not apply?
Fixtures and Exclusions
Cody is the listing agent broker for Desiree, whose home is listed for $425,000. While Desiree is considering an offer for $395,000, Cody receives two more offers. one is for $390,000, and the other is a full-price offer.what could Cody do?
He should submit all of the offers to Desiree.
Which statement regarding the Back-Up Contract Addendum is TRUE?
In the event the original contract is terminated, the back-up contract goes into effect.
According to the North Carolina tax timetable, property owners should expect to get their tax bills shortly after January 31. July 1. August 31. December 1.
July 1.
What is the first day of the fiscal year for North Carolina counties and municipalities? January 1. April 1. July 1. October 1.
July 1.
Which is TRUE about asbestos? Artificial ashes and embers in gas fireplaces may contain asbestos in new homes. Most products made today do not contain asbestos. Even undamaged asbestos materials present a health hazard. Asbestos can cause respiratory problems, but evidence shows it is not a carcinogen.
Most products made today do not contain asbestos.
The governmental agency that oversees the activities of real estate licensees, including offers and sales contracts, is the Department of Housing and Urban Development. Federal Housing Administration. North Carolina Real Estate Commission. North Carolina Real Estate Division.
North Carolina Real Estate Commission.
Which paragraph is omitted from the Offer to Purchase and Contract—Vacant Lot/Land Standard Form 12-T because it does not apply?
Personal Property
If Samuel S. and Samantha S. Smith want to make an offer on a property, what should the broker enter in the Offer to Purchase and Contract as the buyer? Mr. and Mrs. Samuel Smith Mr. and Mrs. Samuel S. Smith Samuel Smith and Samantha Smith Samuel S. Smith and Samantha S. Smith
Samuel S. Smith and Samantha S. Smith
Sandra is selling a parcel of vacant land, which is listed by broker Frank. Buyer Karen submits an offer using the Offer to Purchase and Contract—Vacant Lot/Land Standard Form 12-T. If Sandra accepts the offer, who is responsible for clearing the portion of the property required by the county to perform tests, inspections, or evaluations to determine the suitability of the property for a sewage system and/or private drinking water well?
Sandra
Which of the following actions by a group of brokers would be considered boycotting? They decided to avoid showing clients homes listed by Easy Realty. They divided up their town into quadrants so that each could focus on her specific area. They included a clause in their listing contracts requiring clients to use Thomas Title Company. They published a fee sheet showing what the brokerages in the area should charge for specific services.
They decided to avoid showing clients homes listed by Easy Realty.
Chris has an easement to harvest the final soybean crop on the land he sold. Just before harvest, Chris inherits $8 million. He calls the new owner and tells her that he is moving to St. Croix and that she can do whatever she wants with the soybeans. What's the MOST LIKELY way his easement will be terminated? A.abandonment B.destruction C.failure of purpose D.release
abandonment
Which element is NOT required for a deed to be valid? acknowledgment consideration granting clause legal description
acknowledgment
The city assesses a specific tax to replace the curbs and lights on Marcia's street, and she ignores the tax bill, as she has ignored all of her other bills. The city files a lien. Eventually, the bank forecloses on her mortgage. Of the four liens on Marcia's property, which is in first priority? ad valorem tax lien mechanic's lien mortgage lien special assessment lien
ad valorem tax lien
A broker needs to incorporate specific provisions into a real estate sales contract form to reflect the intentions of the client. What would be an appropriate course of action for the broker? advise the parties to contact an attorney to draft the contract draft an addendum herself and attach it to the contract use the appropriate addendum published by the Real Estate Commission write the provisions into the contract form and have all parties initial the additions advise the parties to contact an attorney to draft the contract draft an addendum herself and attach it to the contract use the appropriate addendum published by the Real Estate Commission write the provisions into the contract form and have all parties initial the additions
advise the parties to contact an attorney to draft the contract
Under the NCAR/NCBA Offer to Purchase and Contract, the seller is responsible for which of the following financial obligations? appraisal confirmed special assessments costs associated with the loan title search
confirmed special assessments
In whose office would you MOST LIKELY find a plan book showing lots and blocks? broker county recorder state auditor the Department of Natural Resources
county recorder
Melinda decides to sell part of her property to Bill. Once the sale is complete, Melinda still crosses what is now Bill's property to get to the main road since it is the most direct path, even though no written easement has been created. This is an example of an A.easement by agreement. B.easement by express reservation. C.easement by implication. D.easement by necessity.
easement by implication.
Under the provisions of the Machinery Act, North Carolina counties must reassess property values at least once every two years. four years. six years. eight years.
eight years.
A condition that exists outside or within a property that could harm a person or another property is known as an environmental hazard. external hazard. external obsolescence. internal hazard.
environmental hazard.
under an installment land contract, the buyer holds
equitable title.
Which of the following is NOT a characteristic of a real property tax lien? a.general b.statutory c.specific d.involuntary
general
Sally died testate. She has no spouse, no children, and no surviving siblings. Who would inherit Sally's estate? her alma mater, to which she left everything in her will her Grandma Sadie her Uncle Joe the state where she lived
her alma mater, to which she left everything in her will
Radon has become a bigger problem in recent years because homes are being built more airtight to save energy. of media exaggerations about the dangers. people are using their basements more for entertaining. remediation costs have gone up significantly.
homes are being built more airtight to save energy.
One purpose of a comprehensive plan is to manage a community's environmental rules. housing needs. revenue stream. zoning and other restrictions.
housing needs.
Broker Brigette's buyer client intends to purchase a home using a VA loan. Brigette completes the FHA/VA Financing Addendum, which will allow the buyer to back out of the contract without penalty
if the value of the property is less than the purchase price.
Which is LEAST LIKELY to be a factor on which special assessment rates are calculated? frontage of the property income of the property owner market value of the property square footage of the property
income of the property owner
Property taxes create a(n) involuntary general lien. involuntary specific lien. voluntary general lien. voluntary specific lien.
involuntary specific lien.
Broker Clarabelle will be entering into an agreement to provide brokerage services to a landlord. This type of agency agreement is called a lease. is called a property management agreement. may be oral or in writing. must include an automatic renewal clause.
is called a property management agreement.
Which type of lien can be either voluntary or involuntary? A.income tax lien B.judgment lien C.mechanic's lien. D.property tax lien
judgment lien
All of the following are examples of specific liens EXCEPT A.judgment liens. B.mechanic's liens. C.property tax liens. D.special assessments
judgment liens.
Under an installment land contract, the seller holds
legal hold.
Of these, which is LEAST LIKELY to be paid for with a special assessment? beach erosion control flood and hurricane protection new sports stadium sewer repair
new sports stadium
A nonexclusive listing in which only the broker who is the procuring cause of a sale earns a commission is a(n) limited-services listing. net listing. open listing. protected listing.
open listing.
Daphne. a victim of identity theft, cannot currently qualify for a loan but wants to buy her friends condo for $90,000. She pays him $1,000 now, snd he promises not to sell to anyone else on the next six months and to give her the opportunity to purchase that property within that time period. This agreement is a(n)
option agreement
A detailed survey map of a subdivision is called a county recorded map. plat map. plot map. topographic map.
plat map.
In the metes and bounds system, the description always ends at the fixed monument. intersection of range lines and baselines. point of beginning. primary deviation.
point of beginning.
A statement of fact that is made to influence a person's decision to enter into a contract is referred to as a(n)
representation.
Utility companies often have easements in gross that allow them to access lines or pipes. In such a case, if the gas company digs up a lawn to get to a pipe, the homeowner's property would be the A.dominant tenant. B.dominant tenement. C.servient tenant. D.servient tenement.
servient tenement.
Once you have the assessed value, the amount of property taxes can then be determined by applying the assessed value to the A.market value. B.tax rate. C.tax ratio. D.tax value.
tax rate
Licensee Ray of ABC Realty and licensee Bonnie of XYZ Realty are having dinner when Bonnie mentions she's having trouble getting listings in a particular part of town. Ray says he's happy to handle all the listings in that neighborhood if she agrees to quit trying to land clients there. In exchange, he'll send prospective clients her way if they live closer to her business. This is an example of boycotting. price-fixing. territory allocation. tying in.
territory allocation.
Under the terms of the NCAR Exclusive Right to Sell Listing Agreement, the sellers are required to disclose all of the following EXCEPT any current deed of trust on the property and the approximate balance. any current or anticipated bankruptcy proceeding. the presence of any known exterior insulation and finish system. the square footage of the living area.
the square footage of the living area.
Which is LEAST LIKELY to be a taxing unit in the State of North Carolina under the provisions of the Machinery Act? a city a county the state a township
the state
A broker who is a member of the North Carolina Association of Realtors® (NCAR) needs to incorporate specific provisions into a contract form to reflect the intentions of the client. What would be an appropriate course of action for the broker? draft an addendum and attach it to the contract use the appropriate NCAR/NCBA standard addendum use the appropriate addendum published by the Real Estate Commission write the provisions into the contract form and have all parties initial the additions
use the appropriate NCAR/NCBA standard addendum
Fiona bought a lot to build a home. The zoning for that town said that the lot had to be 100 feet wide, but to Fiona's surprise, she learned that the lot was only 98 feet wide when she applied for a building permit. The land is worthless to Fiona if she cannot build the house for lack of two feet. What does Fiona need from the zoning board? buffer zone conditional use nonconforming use variance
variance
Which property would be LEAST LIKELY to be eligible for property tax exemption? county courthouse elementary school synagogue veterinary hospital
veterinary hospital
In a particular city suburb, all of the fast-food signs are at least 20 feet from the road and no more than 10 feet high. This is a result of building codes. subdivision regulations. variances. zoning ordinances.
zoning ordinances.
Cleo was just informed that the new house she is having built will not be ready for occupancy until September 10. However, closing on the sale of her existing house is scheduled for September 2. If the buyer agrees to let Cleo remain at the property for 10 days after closing, what standard addendum would be appropriate to use for this situation?
Seller Possession After Closing Agreement
Seller Willie has entered into a binding contract to sell his house to buyer Penny. Before the sale closes, another buyer, Brady, submits a back-up offer, which Willie accepts. What happens if the sale to Penny closes?
The back-up contract is null and void, and Brady will receive a refund of his earnest money deposit.
There is a protective covenant on the subdivision lot that Sally bought. There are also zoning restrictions. Which statement is true? The more restrictive of the two will control. Both are restrictions appurtenant to all the subdivision lots for no more than five years. The protective covenant restrictions are enforced by the local zoning board. Protective covenants can legally enforce prohibitions against federal fair housing protected groups.
The more restrictive of the two will control.
Broker Adele's buyer client, Alex, wants to make an offer on a house. If Adele is NOT a member of the North Carolina Association of REALTORS®, Adele may use a contract form that Alex drafts with advice from Adele. a contract form that is drafted by an attorney. the standard NCAR/NCBA Offer to Purchase and Contract. the standard Offer to Purchase and Contract published by the North Carolina Real Estate Commission.
a contract form that is drafted by an attorney
The value placed on land and buildings by a city, town, or county assessor for use in levying annual real estate taxes is a property's A.appraised value. B.assessed value. C.market value. D.sales price.
assessed value.
Licensee Jack is trying to sign a new seller client, who tells him that she has talked to someone at ABC Realty already. Jack tells her, "You don't want to go with ABC. None of the other brokerages around town will show their listings because they charge a flat fee." What type of violation might this situation be considered, if any? boycotting market allocation price-fixing no violation
boycotting
The government sends Frank a notice stating that his house and neighborhood will be demolished to build a much-needed water treatment plant. What is the government required to offer Frank in exchange for condemning his property? just compensation nothing, since it is for the public good whatever Frank asks for whatever they decide is reasonable
just compensation
A sum of money that the parties to a contract agree in advance will serve as compensation in the event of a contract breach is referred to as collateral damages. compensatory damages. liquidated damages. punitive damages.
liquidated damages.
North Carolina's Conservation and Historic Preservation Agreements Act is legislation with which goal? preservation of easements preservation of library and museum land preserving and protecting historic landmarks and natural resources at national parks preserving and protecting valuable resources such as historic buildings and natural areas
preserving and protecting valuable resources such as historic buildings and natural areas
A buyer's agent is preparing an offer using a preprinted offer to purchase and contract form. According to the Real Estate Commission Rules, the preprinted form must include all of the following EXCEPT itemization of any personal property included in the transaction. legal description of the real property. provision disclaiming liability for any representations made by the broker in connection with the transaction. purchase price and manner of payment.
provision disclaiming liability for any representations made by the broker in connection with the transaction.
A listing broker will lose the right to a commission if she did not personally show the property to the buyer. does not advertise the property. produces a willing buyer. was not licensed when the seller entered into a binding sales contract.
was not licensed when the seller entered into a binding sales contract.
The NCAR/NCBA Offer to Purchase and Contract allows a party to delay settlement for up to _______ days without being considered in breach of contract. 3 7 14 21
14
Which statement about completing preprinted forms is TRUE? A broker is not liable for an improperly prepared preprinted contract form. A broker is permitted to modify an electronically generated preprinted contract form by marking a change if directed to do so by the parties. A broker must use the standard Offer to Purchase and Contract published by the Real Estate Commission. The Real Estate Commission requires the use of the NCAR/NCBA Offer to Purchase and Contract in residential sales transactions.
A broker is permitted to modify an electronically generated preprinted contract form by marking a change if directed to do so by the parties.
Of these types of deeds, which would most likely be used to clear a cloud on a title, such as a misspelled name? bargain and sale deed general warranty deed quitclaim deed special warranty deed
quitclaim deed
A "notice of pending litigation" to inform potential homebuyers that a property is in a pending lawsuit that will affect title to the property is called a(n) A.attachment lien. B.lis pendens. C.restrictive covenant. D.writ of attachment.
lis pendens.
Bernard is the original owner of a home that was built in 1974. The following are potential lead health effects his family may have been exposed to over the years EXCEPT damage his children's nervous systems damage his unborn children's brains while his wife was pregnant with them low blood pressure muscle and joint pain
low blood pressure
Property can be affected by mold because all mold is toxic. mold is frequently found in areas with high moisture levels, and the moisture problem must be remedied. mold usually grows behind wallpaper or inside the walls. toxic mold can grow in any area under any conditions.
mold is frequently found in areas with high moisture levels, and the moisture problem must be remedied.
When the area in which June owns her florist shop is rezoned residential, what specific exception allows her to stay in business? area variance conditional use nonconforming use special exception
nonconforming use
Prior to closing, a property being sold by Terrence to Jason is materially damaged during a fire. If Jason decides to terminate the contract, he will be entitled to a refund of the due diligence fee only. the earnest money deposit only. the due diligence fee and the earnest money deposit. neither the due diligence fee nor the earnest money deposit.
the earnest money deposit only.
Bill is buying a house from Susan and Rob. Who must sign the deed at settlement? the grantee the grantor the mortgagee the settlement officer
the grantor
Why are real estate instruments recorded in the county in which the property is located? because the law requires that such instruments be recorded because the broker cannot get his commission until these documents are recorded to comply with the terms of the statute of frauds to give constructive notice of an interest in a particular parcel of real estate
to give constructive notice of an interest in a particular parcel of real estate
A seller accepts an offer, and the listing agent emails an electronic copy of the signed offer to the buyers agent. when does the offer become a binding contract?
when the email containing the offer, signed but he seller, is received by email server of the buyer's agent.
A pre-judgment right to a creditor to ensure that the debtor's property will be available to satisfy the debt once the judgment is finalized is called a(n) A.judgment lien. B.lis pendens. C.restrictive covenant. D.writ of attachment.
writ of attachment.