National Real Estate Exam Practice
What is the statutory period for adverse possession in North Carolina? Topic: General Real Estate Topics Subtopic: Transfer of title 10 years 15 years 20 years Five years
20 years
North Carolina licensee Derek just received the executed copy of the sales contract his seller client, Emily, signed yesterday. How long does he have to deliver a copy of this contract to Emily? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Five days Four days Three days Two days
3
North Carolina broker Teddy was representing buyer Jamaal, and was getting ready to complete an Offer to Purchase and Contract form for him. Which of the following provisions is prohibited in this form? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures A provision addressing payment of broker compensation or commission, including the forfeit of any earnest money A provision regarding any loan the buyer must obtain as a condition of the contract, including the loan type, amount, term, interest rate, discount points, and other required details A provision that denotes any part of the purchase price to be paid using a promissory note, including the specific amount, interest rate, payment terms, and other required details A provision that provides the property's legal description
A
Who is responsible for verifying the accuracy of a North Carolina settlement statement that's been prepared by an attorney? Topic: Other North Carolina Laws and Practices Subtopic: Broker responsibilities related to closing A lawful settlement agent One or both of the representing brokers-in-charge The broker The opposing party's attorney
A broker may adopt a settlement statement that was prepared by an attorney or lawful settlement agent for this purpose, but the broker must verify its accuracy and notify all parties to the closing of any errors within the statement.
When a brokerage firm acts as a dual agent in a transaction, who must disclose this agency status to the transaction parties? Topic: Other North Carolina Laws and Practices Subtopic: Agency relationships in real estate sales The firm's administrative staff The firm's associate broker The firm's attorney The firm's broker-in-charge
A brokerage firm that's representing more than one party in a real estate transaction is acting as a dual agent; this dual agency status must be disclosed by the firm's associate broker.
North Carolina broker Jason and buyer Elle have been working under an oral agency agreement. Jason suggests he could devote more time and energy to finding Elle the right property if they had an exclusive agency agreement. After he explains what that means, she agrees to it. Which of the following is true of this situation? Topic: Other North Carolina Laws and Practices Subtopic: General requirements for agency contracts This agreement must be put into writing and signed by the parties before Elle closes on the property she buys. This agreement must be put into writing and signed by the parties before Elle makes an offer on a property. This agreement must be put into writing and signed by the parties immediately. This agreement must be put into writing and signed by the parties within 14 days.
A buyer or tenant agency agreement that restricts the buyer's right to work with other agents (or forbids the buyer from working with other agents), or that binds the buyer to the broker for a specific time period must be put in writing and signed by the parties as soon as the agreement is formed.
Which of the following is a charge against the property by a governmental authority? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Government service fee Reassessment fee Special assessment Special levy
A special assessment is a charge in addition to other taxes and government charges, such as ad valorem taxes, recurring government service fees levied with those taxes, or fees charged by an HOA in addition to any regular HOA dues.
Nathan assisted with the sale of a commercial building. He doesn't hold a real estate license, yet his actions didn't violate any license laws. What must be true about Nathan's situation? Topic: North Carolina Commission Rules and License Law Subtopic: Requirement for a license Nathan is an officer or employee of the company that owned the building he sold. Nathan received a commission of less than $1,000. Nathan works for a nonprofit entity. The commercial building was valued at less than $500,000.
A.
A North Carolina protection agreement is commonly between which two parties? Topic: Other North Carolina Laws and Practices Subtopic: Agency relationships in real estate sales A FSBO seller and the buyer's broker A named buyer and the broker Any buyer and the broker A seller who has representation and the buyer's broker
A. A protection agreement is made between the unrepresented seller and the buyer's broker. Otherwise, the buyer's broker wouldn't collect a fee for the transaction.
How is procuring cause related to a protection agreement in North Carolina? Topic: Other North Carolina Laws and Practices Subtopic: Agency relationships in real estate sales The period of time in the protection clause is only applicable if the licensee is the procuring cause. The protection agreement is invalidated if the licensee is the procuring cause. The protection agreement is valid if the seller is the procuring cause. The protection period can be lengthened or shortened if the licensee is the procuring cause.
A. If a licensee is the procuring cause, the events leading to the successful sale were set in motion by that licensee.
As a new North Carolina licensee, Robyn is thrilled to have completed her first transaction. She made copies of all the transaction-related documents and will send the copies to her broker-in-charge when the transaction closes. Then she'll retain her originals for three years. Is Robin following NC retention requirements? Topic: North Carolina Commission Rules and License Law Subtopic: General brokerage provisions No. Robyn is required to give transaction documents to her brokerage, possibly by way of her broker-in-charge, within three days of receiving them. No. Robyn must retain the original documents for seven years. Yes, as long as she hand delivers hard copies to her broker-in-charge. Yes, as long as she sends the copies by certified mail to her broker-in-charge.
A. North Carolina brokers are required to get copies of transaction documents to their brokerage (possibly by way of the broker-in-charge) within three days of their receipt of the document. After that, the records must be retained for three years and are usually retained by the BIC.
Under North Carolina's Lead-Based Paint or Lead-Based Paint Hazard Addendum, Standard Form 2A9-T, someone buying a house built before 1978 ______. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Has the right to obtain a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-based paint hazards at the buyer's expense, but is NOT required to have an assessment or inspection conducted Has the right to obtain a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-based paint hazards at the seller's expense, but is NOT required to have an assessment or inspection conducted Must have a risk assessment or inspection of the property conducted to look for the presence of lead-based paint and/or lead-based paint hazards at the seller's expense Must have a risk assessment or inspection of the property conducted to look for the presence of lead-based paint and/or lead-based paint hazards conducted at the buyer's expense
A. The Lead-Based Paint or Lead-Based Paint Hazard Addendum states that during the due diligence period, the buyer has the right to obtain a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-based paint hazards at the buyer's expense, but may choose to waive that right.
North Carolina buyer Jenn needed to obtain a mortgage loan to pay for the property she found. Which of the following applies under the Buyer's Due Diligence paragraph of Standard Form 2-T in this situation? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures The Loan paragraph notes the buyer is entitled to apply for a mortgage loan. This paragraph is NOT a contingency. If Jenn isn't approved and doesn't find out until after the due diligence period ends, she'll lose her earnest money. The Loan subparagraph isn't related to mortgage loans. Instead, it applies if the buyer needs to take out a personal loan not to exceed $25,000 to fund the earnest money and/or down payment amounts. The Loan subparagraph is the Loan Contingency provision, which says that if Jenn does everything possible in a timely manner to obtain a loan but her loan isn't approved, she can terminate the contract without losing her earnest money. The Loan subparagraph says the buyer is entitled to apply for a loan, but it's not a mortgage loan contingency. If Jenn's not approved for a loan, she'll be held to the contract's terms and must find a way to purchase the property.
A. The Loan paragraph in Standard Form 2-T notes that the buyer is entitled to apply for and seek approval for a loan. The buyer's obligation to purchase the property is NOT contingent on obtaining a loan. The buyer should work with the lender to try to determine whether it's likely the buyer will be approved for the loan before the due diligence period expires. If the buyer isn't approved before the expiration, the buyer may terminate the contract and have the earnest money returned.
Which of the following actions is NOT required to convert manufactured housing to real property in North Carolina? Topic: General Real Estate Topics Subtopic: Factory built (manufactured) housing Attach the housing to a temporary foundation on property the owner is leasing. File the affidavit of conversion to cancel the DMV title. Remove the moving hitch. Remove the wheels and axle.
A. To convert manufactured housing to real property in North Carolina, the following actions must be taken: Remove wheels, axle, and moving hitch, file an affidavit of conversion to cancel the DMV title, and attach the housing to a permanent foundation on land owned or leased by the homeowner.
Farmer John has installed several pieces of farming equipment in the barn of the North Carolina property he's leased for the past 12 years. Which of the following statements is true of this situation? Topic: General Real Estate Topics Subtopic: Fixtures Equipment pieces are considered agricultural fixtures. At the end of Johns lease, he and the property owner can negotiate whether the equipment stays with the property or not. If it remains, the property owner must pay fair market value to John for it. Farming equipment is considered an agricultural fixture. Once John installed the equipment, it became real property, so it must remain with the property at the end of his lease. The equipment is John's personal property. At the end of his lease, he and the property owner can negotiate whether the equipment stays with the property or not. If it remains, the property owner must pay fair market value to John for it. This equipment is John's, so when the lease ends, he must remove the equipment at his own expense to take it with him.
Agricultural fixtures are a special class of fixtures—those used in a farming operation—in North Carolina, and are considered real property. Any farming-related equipment installed by a resident farmer during the farmer's tenancy is considered real property, so the tenant may not remove this equipment at the end of the lease.
North Carolina buyer Jeffrey made an offer to Miranda, but neglected to include a deadline for acceptance within the offer. Which of the following is true of this situation? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures All offers in North Carolina are valid for 36 hours from the time the offer is communicated to the offeree or offeree's agent. Because the offer didn't include an acceptance deadline, the offer will terminate within a reasonable period of time. North Carolina offers must specify a deadline for acceptance within the offer, or else the offer is considered invalid. The offer is open ended until Miranda formally rejects it or Jeffrey revokes it.
An offeror may specify a deadline and method of acceptance within the offer. If the offeror doesn't provide this information, the offer terminates after a reasonable period of time.
Which of the following expenses is NOT the buyer's responsibility under North Carolina's Offer to Purchase and Contract, Standard Form 2-T? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Appraisal fees Confirmed special assessments Costs related to obtaining a loan to finance the property Deed recordation fees
B. Buyer costs under the contract include proposed (not confirmed) special assessments, expenses related to obtaining a loan, determining restrictive covenant compliance, appraisal, title search and title insurance, as well as any closing attorney fees for preparing settlement statements, the closing disclosure, and the seller disclosure.
North Carolina licensee Scottie is performing a no-fee CMA for his client Jameson. What does this mean? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures He doesn't have a brokerage agreement with Jameson. He has a brokerage agreement Jameson. He has at least a non-provisional real estate license. He's had her non-provisional license for less than three months.
B. In North Carolina, a no-fee CMA may be performed for a consumer with whom there is a brokerage relationship. It's considered "no fee" because the CMA is performed as part of the overall brokerage services, so no separate fee is charged.
Buyer Melinda's new townhome is set to close escrow a week from today. She just received her final, recorded, plat but was extremely disappointed to see that they moved the green space which was supposed to be behind her unit to another part of the subdivision. How long does she have to legally terminate her agreement? Topic: Other North Carolina Laws and Practices Subtopic: Other laws governing the disclosure of information 15 days from the date that the plat was recorded. In 15 days. In five days. In seven days, when the transaction is scheduled to close.
B. Melinda has 15 days from the time she receives the recorded plat to legally cancel the contract if she chooses to do so.
Shondra doesn't have her house on the market yet, but she has a friend coming over to see it—and the potential buyer sounds very eager. Shondra asks her agent, Kim, "When should I provide the North Carolina disclosure forms?" What should Kim's answer be? Topic: Other North Carolina Laws and Practices Subtopic: Other laws governing the disclosure of information "As soon as this potential buyer has seen your house." "When this potential buyer makes an offer." "You can wait until closing." "You have to wait until the house is officially on the market."
B. Shondra should give the required disclosures (the Residential Property and Owners' Association Disclosure Statement and the Mineral and Oil and Gas Rights Disclosure) when a potential buyer makes an offer.
Alvin is doing his initial review of the property the McGivneys are ready to sell. They mentioned there's a septic system on their property that was installed in 1990 when they added a third bedroom. Which of the following is NOT a concern about an existing septic system that Alvin should check with the county health department about? Topic: General Real Estate Topics Subtopic: Ownership of real property Current systems tied to the septic systems Percolation Septic system capacity Straight piping
B. The soil suitability test is performed when an unimproved land is developed, not when an existing home is sold.
Stewart, a North Carolina real estate agent, is selling a piece of commercial property in which he has a 15% interest. Which of the following is true about this situation? Topic: Other North Carolina Laws and Practices Subtopic: Disclosure of agency relationships Stewart can only represent buyers if he explains his role as a sub-agent to them and they agree, in writing, to accept his sub-agency. Stewart can only represent potential buyers if he discloses his ownership interest in writing, and the buyers agree. Stewart can represent potential buyers, but only if he gets them to sign consent to dual agency. Stewart must find someone else to represent any potential buyers.
Because his ownership interest is less than 25%, Stewart can represent buyers if he discloses his ownership interest, and they agree to this in writing.
In North Carolina, which of the following individuals would be required to include their license status in their advertising? Topic: North Carolina Commission Rules and License Law Subtopic: General brokerage provisions Elizabeth, a broker-in-charge who approves all the advertising for her branch Sophie, an out-of-state licensee who works as a nonresidential commercial broker Taryn, a provisional licensee working under broker-in-charge Elizabeth Toni, a broker working at Finest Realty, with broker-in-charge Elizabeth
Brokers who are licensed as a limited nonresident commercial broker who don't live in the state must also identify their license type within their advertising, in addition to following all the other rules.
Which one of the following statements is accurate regarding North Carolina trust accounts? Topic: North Carolina Commission Rules and License Law Subtopic: Handling of trust funds Brokers may have no more than one trust account. Brokers must have at least one trust account whether they handle trust funds or not. Each broker must have a separate trust account for each client. Each broker who handles trust funds must have at least one trust account, but is not restricted to having only one account.
Brokers who handle trust funds must have at least one designated trust account. If the broker does not handle trust funds, then no trust account is required. Brokers are not limited to having only one trust account, though one common trust account may be used for multiple clients. When brokers handle HOA/POA funds, each association must have its own trust account.
In the North Carolina Offer to Purchase and Contract form, ______ is a provision that contains legally binding statements that the buyers make regarding their responsibilities in the purchase. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Buyer Indemnity Buyer Legal Statements Buyer Representations Indemnity
Buyer Representations include the Loan, Other Property, and Performance of Buyer's Financial Obligations sub-paragraphs.
North Carolina broker Tabitha is preparing a representation agreement for her seller clients, the Brands. In it, she'll disclose the conditions of her compensation to make the receipt of her compensation legal. In order to ensure that she has fully disclosed the compensation she'll receive, what information must she include? Topic: North Carolina Commission Rules and License Law Subtopic: General brokerage provisions The license number of the recipient, how the compensation will be paid, and its value The terms that the recipient must meet to earn the compensation, the authority by which it can be collected, and the identity of the party paying the compensation Who's paying the compensation, what type of compensation it is, and its value Who's receiving the compensation, when it will be paid, and in what form
C. "Fully disclosed" means that the disclosure includes, at least, a description of the compensation (including incentives, bonuses, rebates, etc.), the value of the compensation (a dollar amount, percentage, or equation), and the identity of the party paying the compensation
Which of the following is NOT a valid reason for an offer termination in North Carolina? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Counter-offer Death Improper forms Insanity
C. In addition to the incorrect answers, rejection, expiration, revocation, or destruction of property may terminate an offer.
When reporting a sales or lease price, North Carolina law says you can report it as a single figure or as _______. Topic: General Real Estate Topics Subtopic: Ownership of real property An estimated range An exact value A probable range A varying range
C. North Carolina allows brokers the flexibility to report a sales price or a lease price as a single figure or as a price range.
In the North Carolina Offer to Purchase and Contract, which of the following is an exception to the Indemnity provision? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Any loss accidentally caused by the buyer Any loss caused by the buyer's agent Any loss due to pre-existing property conditions Any loss of less than $100
C. Under the Indemnity provision, buyers agree to indemnify and hold the seller harmless for any loss to the property as a result of the buyer's, buyer's agent's, or contractors' activities. The exceptions are for losses due to pre-existing property conditions and/or because of the seller's negligence, willful acts, or omissions.
A sale in which the purchase price may not be enough for the seller to pay the costs of the sale, the seller may not have sufficient liquid assets to pay the costs of the sale, and the lienholders agree to release or discharge their liens upon paying an amount less than the amount secured by their liens, with or without the seller being released from any further liability, is known as ______. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures A bankruptcy sale A fire sale A foreclosure A short sale
D
Mary is a property manager for a small apartment complex in Greensboro. If no exceptions are agreed upon between Mary and Charlotte, the property owner, within what time frame would Mary need to deliver any rental agreements or leases to Charlotte? Topic: North Carolina Commission Rules and License Law Subtopic: General brokerage provisions Any time before the termination of tenancy Within 45 days of Mary's receipt of the signed document Within the first month of tenancy Within three days of Mary's receipt of the signed document
D
All of the following statements about counter-offers in North Carolina are true except which one? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Acceptance of a counter-offer must be communicated promptly to the other party. Brokers may reach out on behalf of seller clients to ask whether the prospective buyer would be willing to accept proposed changes to a submitted offer without actually making a formal counter. Each time a counter-offer is made, it must be communicated promptly to the other party. Each time a counter-offer is made, the previous offer or counter-offer remains in play until it is officially rejected in writing by the offeree.
D. Every time the party receiving the counter-offer makes changes to it, the previous counter-offer is rejected, and the current counter-offer (including all agreed-upon changes up to that point) becomes the only document in play. This doesn't require an official rejection from the offeree.
Which of these federal exemptions to federal fair housing law is NOT included in the North Carolina state fair housing law exemptions? Topic: North Carolina Commission Rules and License Law Subtopic: Prohibited acts/conduct An investor owns and rents out five duplexes. A non-profit owns 20 properties that it only rents to Caucasian families. Discrimination in advertising if the owner occupies one of the units in a 4 unit or less dwelling. Exemption of owners in both the sale and lease of property being sold without a broker, and there is no intent expressed, either published or orally to do so.
D. Federal fair housing exempts property owners in the sale and lease of property, while state fair housing law doesn't allow this exemption for the sale of property, only leasing.
When is the Assumption contingency used in North Carolina form 580-T? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures When the buyer must obtain financing When the buyer reserves the right to terminate if financing can't be arranged When the seller reserves the right to terminate if the buyer can't obtain financing When the seller's current loan will remain in place
D. The Assumption contingency is used when the buyer is assuming the seller's existing loan.
Which of the following scenarios includes a conflict of interest that the licensee must disclose? Topic: Other North Carolina Laws and Practices Subtopic: Agent's duties to principal Aria represented Grace, who was trying to buy a house. Aria showed a property to Grace, and the next day showed the same property to another one of her clients. John represented Martha, who was selling her home. Martha's neighbor Tim asked John to list his home, too. Kennedy was the sponsoring broker for the real estate brokerage firm where he works. Licensee Weldon was selling his condominium to the Humphrys.
D. When a licensee is a principal in a real estate transaction, it creates a conflict of interest.
In North Carolina, when disputed trust funds have been handed over to a clerk of the superior court in the county where the property is located, how long does a disputing party have to file a court proceeding to attempt to recover the funds? Topic: North Carolina Commission Rules and License Law Subtopic: Handling of trust funds 30 days 90 days Five years One year
D. When disputed funds have been turned over to a clerk of the superior court, the disputing parties may attempt to recover the funds from the clerk by filing a special proceeding with the court. It will be up to the clerk to determine rightful ownership. If neither party files a special proceeding within one year, the disputed funds are considered unclaimed and go to the state treasurer.
______ occurs when two agents from the same firm represent the seller and buyer in the same transaction. Topic: Other North Carolina Laws and Practices Subtopic: Dual agency Designated agency Non-agency Single agency Undisclosed dual agency
Designated agency occurs when the same firm represents both the seller and buyer (or tenant and landlord) in the same transaction, but one agent from the firm is designated by the broker-in-charge to work exclusively as the seller's agent, and another agent is designated as the buyer's agent.
In order for a North Carolina brokerage firm's license to remain active, it must have _____. Topic: North Carolina Commission Rules and License Law Subtopic: Broker-in-charge A broker-in-charge A minimum of five licensed brokers affiliated with it An actively licensed qualifying broker Office space
For a North Carolina business entity other than a sole proprietorship to operate as a brokerage within the law, it must be licensed as a firm, and it must have a qualifying broker with an active license at the helm. If the qualifying broker's license lapses, then the firm's license will become inactive.
A broker has a duty to disclose the existence of an agency relationship, personal interest, and the ___________. Topic: Other North Carolina Laws and Practices Subtopic: Agent's duties to principal Lender's current interest rate Name of the appraisal company Party's inability to successfully close the sale Seller's future purchasing decision
If any party withholds information that could be a dealbreaker for the transaction, the broker should share that information with the other party.
Under the terms of the North Carolina Vacation Rental Act, certain provisions apply to the voluntary transfer of property if it's used as a vacation rental. One such provision says that if a planned vacation rental agreement ends more than ______ days after closing, the tenants have no rights to enforce the agreements unless the buyer agrees in writing to honor them. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures 180 270 365 90
If the agreements end more than 180 days after closing, the tenants have no rights to enforce the agreements unless the buyer agrees in writing to honor them. If the buyer doesn't honor a vacation rental agreement, the tenants are entitled to a refund of any payments made.
Under the terms of the North Carolina Offer to Purchase and Contract, Standard Form 2-T, if the buyer fails to _______ before the due diligence period expires, this indicates that the buyer waives any right to terminate the contract based on anything related to the buyer's due diligence. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Deliver a termination notice to the seller Deliver a written notice of property inspection to the seller Provide the seller with a written reminder of the pending due diligence period expiration at least eight days Provide the seller with a written reminder of the pending due diligence period expiration at least five days
If the buyer doesn't deliver a termination notice to the seller before the due diligence period expires, the buyer waives any right to terminate the contract related to the buyer's due diligence. However, after the due diligence period, the buyer still has the right to terminate the contract if the seller does not materially comply with any of the seller's obligations.
Sherry is selling her North Carolina home to Abigail. Which of the following will be triggered by the transfer? Topic: General Real Estate Topics Subtopic: Transfer of title A conveyance processing fee A deed production tax An excise tax A possession fee
In North Carolina, an excise fee is triggered when property is transferred from one party to another in a non-exempt transaction.
In North Carolina, the completion of the legal process that results in the title being transferred from the seller to the buyer is called the ______. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Acceptance Closing Settlement The authorization of funds transfer
In North Carolina, closing includes a few steps, including settlement, completion of satisfactory title update to the property following settlement, the closing attorney's receipt of authorization to disburse all necessary funds, and, finally, recordation of the deed and deed of trust, if any, in the appropriate county registry.
In which of the following cases can joint tenants have unequal interests in North Carolina? Topic: General Real Estate Topics Subtopic: Ownership of real property Anytime, provided it's clearly stated in the title. Never. If the ownership interests aren't equal, there's no joint tenancy. Only if all joint tenants orally agree to the unequal interests Only if all joint tenants sign a statement saying they agree to the unequal interests
In North Carolina, joint tenants can have unequal interests provided it's clearly stated in the title.
Alexandra moved out of an North Carolina rental house on the second of the month. How long does her landlord have to refund the security deposit and provide an itemized list of deductions? Topic: Other North Carolina Laws and Practices Subtopic: Laws protecting residential tenants 21 days 30 days 45 days By the second of the next month
In North Carolina, landlords must return a security deposit and provide an explanation of any deductions within 30 business days of the tenant vacating the premises.
What North Carolina agency is responsible for ensuring compliance with the federal Safe Drinking Water Act? Topic: General Real Estate Topics Subtopic: Public land use controls Conservation Agency Division of Surface Water Public Water Suppliers Section Water Protection Agency
In North Carolina, the Public Water Suppliers section is responsible for ensuring compliance with the federal Safe Drinking Water Act.
On Friday, North Carolina resident Eli made an offer on Olivia's property and gave her a deadline of 11:59 p.m. on the following Tuesday to accept it. On Sunday, while waiting for Olivia's response, Eli happened by an open house down the street from him and immediately fell in love with it. He decided to revoke his offer on Olivia's property and make an offer on this new property instead. Which of the following is true of this situation? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures He can revoke his offer on Olivia's property any time before he is notified that she accepted the offer in writing. He can revoke his offer on Olivia's property until midnight on Wednesday. He can revoke his offer provided Olivia hasn't yet accepted it and Olivia signs a written statement agreeing to the revocation. Offers are irrevocable in North Carolina.
In North Carolina, the offeror can withdraw the offer any time before the offeree accepts it in writing, and that acceptance is communicated to the offeror. This is true even if the offeror has given the offeree a designated amount of time to respond to the offer, and that time has not yet passed.
In North Carolina, transaction records must be retained for several years. When does this record retention period begin? Topic: North Carolina Commission Rules and License Law Subtopic: General brokerage provisions At the conclusion of the transaction, or after all transaction funds held by the broker have been disbursed, whichever is later At the conclusion of the transaction, or when the new owner takes possession of the house, whichever is first On the day that the agency agreement is executed, initiating an agency relationship with the transaction principal On the day the transaction closes
In North Carolina, the retention period for transaction records begins after all transaction funds held by the broker have been disbursed, or at the conclusion of the transaction, whichever is later, or, if the agency relationship is terminated before the transaction can be completed, after the termination of the agency agreement or once all transaction funds held by the broker are disbursed, whichever is later.
NCREC has determined through an investigation that Gayle has been practicing real estate without a license. Since the commission doesn't have authority over unlicensed people, how will it handle the situation to prevent Gayle from continuing her unlawful practice of real estate? Topic: North Carolina Commission Rules and License Law Subtopic: The real estate commission It will impose a discipline that Gayle is free to accept or ignore. It will notify law enforcement so a warrant for Gayle's arrest can be issued. It will publish a consumer notice alerting everyone to be on the lookout for Gayle. It will seek injunctive relief in a superior court.
Injunctive relief is a request for a court order demanding that a party cease performing a specific action or actions. This is something the commission does when an unlicensed person engages in real estate activity.
In North Carolina, each piece of real property undergoes a reappraisal every eight years. However, sometimes reappraisals are conducted more frequently. What is the term for the changes in the values of certain property types or when properties in a certain area are uniformly changed in the fourth year after a reappraisal? Topic: General Real Estate Topics Subtopic: NC property tax Horizontal adjustment Leap year reappraisal Quadrennial reappraisal Vertical adjustment
It's up to each North Carolina county to determine whether it will make horizontal adjustments—in which the values of certain types of properties or properties within a certain area are uniformly increased to the current value through a uniform application of specific percentage increase or decrease—in the fourth year following a reappraisal.
Jim is selling his North Carolina farmhouse, but he wants to keep the antique range in the kitchen. On the listing contract, how should he indicate that the range doesn't go with the property? Topic: Other North Carolina Laws and Practices Subtopic: General requirements for agency contracts Include this information in an addendum, along with any other exclusions. Note it as a fixture. Note it as an item that doesn't convey. Write the exclusions in the margin beside the inclusions section.
Items that will not convey with the property should be noted under "Other Items That Do Not Convey" section of the listing agreement.
North Carolina landowner Jeff lives within a county's territorial jurisdiction where a subdivision ordinance has been adopted. When Jeff sells land by referring to a plat that shows a subdivision of land before the plat has been approved under the ordinance and recorded with the county's register of deeds, which of the following statements is true of this situation? Topic: General Real Estate Topics Subtopic: Public land use controls As long as Jeff provided a verbal disclosure to the purchaser that the plat hasn't yet been approved or recorded, he hasn't done anything wrong. As long as Jeff provided a written disclosure to the purchaser that the plat hasn't yet been approved or recorded, he hasn't done anything wrong. Jeff has committed a Class 1 misdemeanor. Jeff has committed a Class 2 misdemeanor.
Jeff has committed a Class 1 misdemeanor. Jeff would also be guilty of a Class 1 misdemeanor if he subdivided that land in violation of the ordinance, or if he transferred or sold land using or otherwise referring to a plat showing a subdivision of the land before the plat is approved under the ordinance and recorded in the office of the applicable register of deeds.
Which of the following organizations worked together to develop standard contract forms and addenda that are appropriate for use in nearly all sales of residential single-family properties in North Carolina? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures North Carolina Association of REALTORS® (NCAR) and North Carolina Bar Association (NCBA) North Carolina Real Estate Commission (NCREC) and North Carolina Association of REALTORS® (NCAR) North Carolina Real Estate Commission (NCREC) and North Carolina Bar Association (NCBA) U.S. Department of Housing and Urban Development (HUD) and Office of Fair Housing and Equal Opportunity (FHEO)
NCAR and NCBA worked together to develop a series of standard contract forms and addenda that are appropriate for use in nearly all residential single-family property sales, and additional forms designed for use in other types of sales transactions. Non-REALTOR® licensees must use the forms that have ONLY the NCBA logo; they must NOT use NCAR forms.
A minimum of ______ commission members must be licensed real estate brokers in North Carolina. Topic: North Carolina Commission Rules and License Law Subtopic: The real estate commission Five Four Three Two
NCREC must include at least three members who are licensed real estate brokers, and at least two members who not involved directly or indirectly in the real estate or real estate appraisal business.
You're a North Carolina broker completing your first Offer to Purchase and Contract form for a buyer client. According to NCREC's manual, ______ allows brokers to competently and accurately complete an approved preprinted sales contract form. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Proper education Proper guidance Proper preparation Proper presentation
NCREC's Real Estate Manual requires that brokers to be properly prepared so they're able to competently and accurately complete an approved preprinted sales contract form (Standard Form 2-T).
North Carolina broker Sam is trying to choose the right contract for his client. Neither he nor his broker-in-charge is a member of any REALTOR® organization. Which of the following options must Sam choose? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Any contract he wishes to use that is appropriate for that type of transaction The appropriate contract provided by NCAR The appropriate contract provided by NCAR and NCBA The appropriate contract provided by NCBA
Non-REALTOR® licensees may only use NCBA forms. Only members of NCAR (or a local REALTOR® organization) may use forms with the NCAR logo.
In North Carolina, where are laws that provide subdivision development regulations found? Topic: Other North Carolina Laws and Practices Subtopic: Other laws governing the disclosure of information National Builder's Code North Carolina City Planning Act North Carolina Planned Community Act Planning Act of 1998
North Carolina Planned Community Act establishes parameters and guidance for communities to develop their own subdivision regulations.
nder what circumstances may North Carolina broker Jules share the amount of an existing offer that's been submitted for her listing with another prospective buyer? Topic: North Carolina Commission Rules and License Law Subtopic: General brokerage provisions Her seller client gives her permission. Jules may share any information that she feels will be to the benefit of her client, and serve his best interests. The person who submitted the existing offer gives her express permission to do so. Under no circumstances may she share that information, as it's confidential.
North Carolina brokers may not share the amount of one offer the seller has received with a competing party, without the express permission of that first offeror.
Which of the following statements about the sales contract form in North Carolina is true? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures In North Carolina, there's only one sales contract form used for real estate sales transactions. North Carolina uses a letter of intent form in place of a sales contract form. There's no one required form used for sales contracts in North Carolina. Unlike in other states, the sales contract in North Carolina isn't legally binding.
North Carolina doesn't mandate a specific form be used for real estate sales transactions. Check with your broker-in-charge to find out which contract form your brokerage uses.
North Carolina broker-in-charge Ken was preparing to disburse trust funds for a transaction that was underway. Unless otherwise directed by the parties involved, Ken may only disburse trust funds to _____. Topic: North Carolina Commission Rules and License Law Subtopic: Handling of trust funds The licensee who originally accepted the funds The seller The seller's agent The settlement agent
North Carolina statute requires that the broker-in-charge who's responsible for a trust account disburse the appropriate trust funds only to the settlement agent (such as a closing attorney), and do so no more than 10 days before the settlement date.
To whom does a North Carolina broker-in-charge normally disburse trust funds? Topic: North Carolina Commission Rules and License Law Subtopic: Handling of trust funds The licensee who originally accepted the funds The seller The seller's agent The settlement agent
North Carolina statute requires that the broker-in-charge who's responsible for a trust account disburse the appropriate trust funds only to the settlement agent (such as a closing attorney), and do so no more than 10 days before the settlement date.
After North Carolina tenant Savannah made a good faith complaint to a government agency about her landlord, Robert, accusing him of violating a health and safety law, Robert can't evict her for ______ for asserting her legal rights to safe, sanitary housing. Topic: Other North Carolina Laws and Practices Subtopic: Laws protecting residential tenants 10 months 12 months Nine months Six months
North Carolina's retaliatory eviction doctrine states that a tenant can't be evicted for at least 12 months for asserting legal rights to decent, safe, sanitary housing.
North Carolina broker Olivia holds an inactive license. She files a request for license activation with the commission on an approved form. At what point will Olivia's license be considered active? Topic: North Carolina Commission Rules and License Law Subtopic: General licensing provisions Once Olivia or her affiliated BIC confirm receipt of the written acknowledgement of license activation from the commission Once the commission receives the form Once the commission sends Olivia and her affiliated BIC a written acknowledgment of the license activation Once the form has been mailed or delivered to the commission
Olivia's broker license is considered active once the license activation form has been mailed to or delivered to the commission. The commission will send a written acknowledgement of this activation to the broker and BIC. If the broker or BIC hasn't received the acknowledgement within 30 days, the broker must immediately terminate all brokerage activities.
To whom must North Carolina broker Ed provide copies of the offer to purchase form after it's been signed by all transaction parties? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures To each party To each party and each broker To each party, each broker, and the lender To each party, each broker, the lender, and the closing attorney
Only the version of the offer to purchase and contract form that's signed by all transaction parties is required to form a valid, legally enforceable, binding contract. In addition to providing copies of the contract to each party and each broker, Ed should also provide copies to the lender and closing attorney.
Keith allowed his North Carolina real estate broker license to expire when he became a certified financial advisor. Four years passed, and Keith decided he'd like to sell real estate again. What does he have to do? Topic: North Carolina Commission Rules and License Law Subtopic: General licensing provisions Complete 50 hours of the current pre-licensing education and file an application for reinstatement with NCREC. Complete any required continuing education and pay double the renewal fee. Retake all post-licensing education and affiliate with a broker-in-charge. Submit an original license application, complete all required pre-licensing education, and pass the exam.
Since Keith's license has been expired for more than two years, he'll have to submit an original license application and pay its fee, along with completing all the associated requirements for original application, including the pre-licensing education and exam. If his license hadn't been expired for three years yet, he could also have his old, non-provisional license status reinstated, but since it's been more than three, he'll be issued a provisional license if he meets the requirements.
For which of the following purposes is the North Carolina Standard Form 340-T, Response to Buyer's Offer, used? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures To accept the buyer's offer To formally counter the buyer's offer To informally counter the buyer's offer To reject the buyer's offer
Standard Form 340-T, Response to Buyer's Offer, expressly states that it is a rejection of the offer, so brokers should NOT use this form when making a simple inquiry about the buyer's willingness to accept a possible counter.
You're helping your buyer client, Shadi, complete the North Carolina Offer to Purchase and Contract, Standard Form 2-T. Which of the following provisions says the form may be signed in multiple originals or counterparts, which, taken together, constitute a single instrument? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Assignments Entire Agreement Execution Possession
The Execution provision states, "This contract may be signed in multiple originals or counterparts, all of which together constitute one and the same instrument." Don't confuse this with the Entire Agreement provision, which says the contract contains the entire agreement of the parties, and that there aren't any other statements or agreements other than what's included in the contract.
North Carolina's FHA/VA Financing Addendum states that if there's a conflict between the contract to which the addendum is attached and the addendum itself ______. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures The addendum always controls The addendum controls, except if there's a conflict regarding the property description or the buyer's or seller's identity, in which case the contract controls The contract always controls The contract controls, except if there's a conflict regarding the property description or the buyer's or seller's identity, in which case the addendum controls
The FHA/VA Addendum (along with several other North Carolina addenda) states that if there's a conflict between the addendum and the contract, the addendum controls unless there's a conflict regarding the property description or the buyer's or seller's identity, in which case the contract controls.
Which of the following is a source of the rules regarding brokerages in North Carolina? Topic: North Carolina Commission Rules and License Law Subtopic: General brokerage provisions The National Association of REALTORS® Code of Conduct The National Real Estate Statutory Manual The North Carolina Administrative Code The North Carolina REALTORS®' Handbook
The North Carolina Administrative Code, also referred to as the commission rules, contains administrative rules that govern brokerages and brokers.
Which of the following is not permitted to be added to a vacation rental agreement according to the North Carolina Vacation Rental Act? Topic: Other North Carolina Laws and Practices Subtopic: Laws protecting residential tenants Eviction and evacuation procedures Language that permits the automatic forfeiture of all, or part of, a security deposit in the event that the tenant breaches the contract The rights and obligations of the Landlord and tenant The rights and obligations of the landlord or broker and the tenant if the property is transferred
The North Carolina Vacation Rental Act prohibits a vacation rental agreement from containing language that permits the automatic forfeiture of all, or part of, a security deposit in the event that the tenant breaches the contract and also requires that vacation rental agreements allow the tenant's security deposit to be applied to actual damages the tenant caused as permitted under the Residential Tenant Security Deposit Act.
Violators of the North Carolina Telephone Solicitations Act can face fines of up to how much? Topic: Other North Carolina Laws and Practices Subtopic: Other laws governing the disclosure of information $1,000 for the first violation $11,000 for the first violation $500 for the first violation More than $40,000 for the first violation.
The North Carolina attorney general can impose a fine of $500 for the first offense, in addition to damages resulting from a civil suit.
In which of the following situations should North Carolina's Offer to Purchase and Contract - Vacant Lot/Land, Standard Form 12-T, be used? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures To purchase/sell a new single-family dwelling for which the construction is complete To purchase/sell a new single-family dwelling that's being constructed before closing when the seller is the buyer's builder To purchase/sell property that's being subdivided, unless the property has already been platted, properly approved, and recorded with the register of deeds as of the contract date To purchase/sell unimproved real property that a buyer wants to buy only for personal use, provided the buyer doesn't have any immediate plans to subdivide it
The Offer to Purchase and Contract - Vacant Lot/Land is intended for unimproved real property that a buyer wants to buy only for personal use, provided the buyer has no immediate plans to subdivide it.
Which of the following terms is NOT a name for the Offer to Purchase and Contract in North Carolina? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Listing agreement Purchase agreement Purchase contract Sales contract
The Offer to Purchase and Contract, Standard Form 2-T, is also referred to as a sales contract, purchase agreement, purchase contract, earnest money contract, or binder. It outlines the terms of the purchase the buyer wishes to propose to the seller. A listing agreement, on the other hand, is a contract between a seller and a real estate brokerage.
Joel found the house of his dreams in Raleigh. While touring the home with his agent, Kelly, he fell in love with the rolltop desk in the upstairs office. Where in the North Carolina Offer to Purchase and Contract, Standard Form 2-T, should Kelly indicate Joel would like this desk to remain with the property? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures In an addendum to the contract Under the Due Diligence provision Under the Fixtures and Exclusions provision Under the Personal Property provision
The Personal Property provision is where buyers should name any personal property item(s) they would like the sellers to convey to them in the sale without any additional charge.
The Real Property Marketable Title Act says, in part, that if a title's checked for 30 years back, and there aren't any claims recorded in that time, then all claims and defects against the title that date beyond that 30-year period are ______. Topic: General Real Estate Topics Subtopic: Title assurance Extinguished Invalid Likely fake Valid
The Real Property Marketable Title Act states, in part, that if a title is checked for the previous 30 years and there are no claims recorded during that time, then all claims and defects against the title that date beyond that 30-year period are extinguished.
When using North Carolina Offer to Purchase and Contract, Standard Form 2-T, what has occurred after the last party to the contract has signed or initialed the offer or the final counter-offer and that information has been communicated to the party who made the offer or final counter-offer? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures The acceptance date has been reached. The closing date has been reached. The effective date has been reached. The offer date has been reached.
The effective date occurs when the contract becomes legally binding upon both parties.
The most commonly used method of legal description in North Carolina is ______. Topic: General Real Estate Topics Subtopic: Transfer of title Government survey system Lot-and-block system Metes and bounds description Rectangular system
The metes and bounds description is the primary legal description method used in North Carolina. This method continues to be used as the primary method of legal description in the original 13 colonies, which include North Carolina.
North Carolina broker Grace is helping buyers Frank and Ella Carson complete the Offer to Purchase and Contract, Standard Form 2-T for a house they found on Manor Drive. The Carsons have to sell their current home before they can complete the purchase of the Manor Drive property. Where should Grace indicate this in the contract? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures In an addendum to the contract Under the Loan provision Under the Other Property provision Under the Sale of Other Property contingency
The need to sell an existing property before being able to complete the purchase of a new home should be indicted under the Other Property provision. However, this provision does NOT make the purchase of the property (on which the offer's being made) contingent on the sale of the existing property.
Who are the parties to a real estate sales contract? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures The buyer's agent and the sellers' agent The buyers and sellers The buyers and their agent The sellers and their agent
The parties to a real estate purchase agreement are the buyers and the sellers. All of the buyers and all the sellers must sign any real estate sales contract.
What is the purpose of a protection agreement in a North Carolina? Topic: Other North Carolina Laws and Practices Subtopic: Agency relationships in real estate sales To establish the broker's commission To protect the buyer from premature termination To protect the buyer from shoddy service To protect the seller
The protection agreement establishes an agreement with the seller to pay a commission fee when the broker procures the cause in a FSBO sale.
What makes the North Carolina sales contract so important? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures It establishes the buyer's agent's and the seller's agent's contractual duties. It establishes the buyer's and the buyer's agent's contractual duties. It establishes the buyer's and the seller's contractual duties. It establishes the seller's and the seller's agent's contractual duties.
The sales contract establishes the parties' (buyer's and seller's) contractual rights and obligations. When completing the sales contract form, all ambiguities should be eliminated.
North Carolina broker Farhad helped his seller client, Kent, understand the Offer to Purchase and Contract, Standard Form 2-T, he received from buyer Irene. On the morning of settlement, Kent's oven exploded and caused $35,000 in damages. Which of the following is true of this situation under the contract? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures The buyer and seller must split the costs equally. The buyer is responsible for paying for the damages. The contract must be terminated. After the seller repairs the damages, the buyer and seller have six months to form a new contract with the all of the original contract's terms. The seller is responsible for paying for the damages.
The seller is responsible for the damages. Under the contract, the seller is advised to keep insurance on the property until receiving confirmation that the deed has been recorded in the buyer's name.
Mercy is a time share project developer's general partner. Before a time share registrar has been designated for the project, Mercy intentionally allows time shares to be sold to purchasers. Which of the following is true? Topic: North Carolina Commission Rules and License Law Subtopic: North Carolina Time Share Act Mercy is guilty of a Class E felony. Mercy is guilty of a Class E misdemeanor. Mercy is guilty of a Class I felony. Mercy is guilty of a Class I misdemeanor.
The time share project developer's general partner, corporate officer, joint venture, or sole proprietor is guilty of a Class I felony if that person intentionally allows time shares to be offered for sale or sold to purchasers before a time share registrar has been designated.
As North Carolina buyer Kara was reading through Standard Form 2-T, she came to the wire fraud warning near the end of the contract. This warning tells buyers they should ______. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Call the buyer's agent to verify the wiring instructions Call the buyers' lending institution to verify the wiring instructions Call the closing attorney's office to verify the wiring instructions Promptly wire funds according to the wiring instructions received via text message or phone call
The wire fraud warning near the end of North Carolina's Offer to Purchase and Contract, Standard Form 2-T, instructs buyers to call the closing attorney's office to verify the wiring instructions.
North Carolina broker Addie had a client who wanted to enter into an option contract. Which of the following is true of this situation? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Addie may not draft the contract herself, but her broker-in-charge may. She should ask him to do so. Addie should draft the contract herself. Addie should use North Carolina Standard Form 2-T and add the Option Contract Addendum to it for her client's transaction. There's no standard option contract in North Carolina.
There is NO standard option contract form available in North Carolina. Because option contracts are legally complex and their contents vary widely, brokers should advise anyone who wants to become involved in an option contract to consult an experienced real estate attorney regarding an individualized option to purchase contract.
The North Carolina Residential Property Disclosure Act applies to which type of transaction? Topic: Other North Carolina Laws and Practices Subtopic: Other laws governing the disclosure of information A sale by foreclosure or auction A transfer of a single-family residential real property to a family member as part of an estate The initial sale of a single-family residential property that has never been occupied The sale of single-family residential real properties that includes four or fewer units
This act applies to the sale of residential properties that include four or fewer units.
In North Carolina, a tenant or household member who is a victim of domestic violence, sexual assault, or stalking, and for whom special accommodations must be made, is known as a(n) ______. Topic: Other North Carolina Laws and Practices Subtopic: Laws protecting residential tenants Injured party Injured tenant Protected citizen Protected tenant
This describes a protected tenant. A landlord must not terminate a tenancy, fail to renew a tenancy, refuse to enter into a rental agreement, or otherwise retaliate in the rental of a dwelling based substantially on one's status as a protected tenant.
Under the terms of the North Carolina Vacation Rental Act, the buyer or buyer's agent must notify each tenant in writing of the property transfer, the buyer's name and address, and the date the buyer's interest was recorded no later than _______ days after closing. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures 10 20 30 Five
This must occur no later than 20 days after closing. In addition, the buyer or buyer's agent must also, no later than 20 days after closing, advise each tenant regarding the tenant's right to occupy the property under the terms of the agreement and the North Carolina Vacation Rental Act.
Marco has been a licensed and active real estate broker in North Carolina for the past three years. What will make him eligible for broker-in-charge status? Topic: North Carolina Commission Rules and License Law Subtopic: Requirement for a license He must complete and pass the 12-hour broker-in-charge course. He must have served one term on the North Carolina Real Estate Commission. He must receive a passing score on the broker-in-charge exam. He needs at least five years of real estate experience.
To earn the broker-in-charge status, Marco must complete and pass the 12-hour broker-in-charge course. He needs to get at least two years of full-time brokerage experience in the last five years before he applies, so he meets this requirement already. There's no BIC exam, and no requirement to serve a term on the commission.
The NCREC defines ______ as "all moneys received by a broker acting in his or her fiduciary capacity." Topic: North Carolina Commission Rules and License Law Subtopic: Handling of trust funds Down payments Earnest money deposits Fiduciary funds Trust money
Trust money is defined in the commission rules as "all moneys received by a broker acting in his or her fiduciary capacity." Some of the most common types of trust money include earnest money deposits, down payments, rents, and tenant security deposits.
How are changes typically made to an offer in order to create a counter-offer in North Carolina? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures The broker handwrites any alterations directly onto the original offer form, and the seller initials and dates those changes. The broker must attach an amendment that notes any changes the seller wishes to make to the original offer, and the seller must sign and date that amendment. The broker must use a blank offer form, transferring all the original offer terms to that form, except those terms the seller wishes to counter. Any countered terms must be highlighted so they're immediately noticeable. The seller must reject the original offer and have the listing broker write up a new offer to include all of the terms the seller wants. Then the seller must sign and date the offer.
Typically, written alterations to a proffered contract are made by handwriting those changes onto the original offer. A new form is only used if there have been numerous counter-offers and the original offer form is so filled with information that it becomes hard to understand.
Under the terms of the North Carolina Offer to Purchase and Contract, Standard Form 2-T, unless otherwise agreed upon by the parties, possession is to be delivered to the buyer upon ______. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Closing Delivery of the earnest money Expiration of the due diligence period The contract's effective date
Under this contract, possession—which includes all means of access to the property, such as keys, security codes, and garage door openers—must be delivered upon closing unless otherwise provided in the contract.
Wesley was selling his three-bedroom home. His broker, Marty, advised him of his obligation to complete the Residential Property and Home Owners Association Disclosures (RPOADS). Which of the following statements is true about the disclosures that Wesley must make about the property? Topic: Other North Carolina Laws and Practices Subtopic: Other laws governing the disclosure of information If Wesley learns of any material defects after submitting the disclosure report to the buyer, he's not obligated to tell the buyer of them. Wesley can ask Marty to complete the disclosure report on Wesley's behalf. Wesley is only responsible for disclosing material defects of which he's aware. Wesley must use a licensed home inspector to identify all material defects in his home before completing the report.
Wesley is obligated to disclose all material defects of which he's aware, but he's not required to perform any investigation or inspection to find issues that he doesn't already know about.
If the attorney general instigates a lawsuit and the defendant is found to have knowingly violated the Unfair or Deceptive Trade Practices Act, the court may choose to impose a civil penalty of as much as ______ for each violation. Topic: Other North Carolina Laws and Practices Subtopic: Other laws governing the disclosure of information $1,000 $10,000 $5,000 $7,500
When a broker is proven to have knowingly violated the Unfair or Deceptive Trade Practices Act, the court has the authority to impose a civil penalty of as much as $5,000 per violation.
North Carolina broker Hillary accepted a client's earnest money check before his offer had been accepted. By when must Hillary's broker-in-charge deposit the check into the brokerage's trust account? Topic: North Carolina Commission Rules and License Law Subtopic: Handling of trust funds Hillary's BIC must deposit it within three banking days after offer acceptance. The BIC has three banking days after Hillary received the check. The BIC must deposit it within three banking days of the sale closing. The check must be deposited immediately.
When earnest money or tenant security deposits are given to a broker in non-cash form for a pending offer to buy or lease, the funds must be deposited no later than three days after the offer acceptance rather than date of deposit receipt.
North Carolina buyer Max wanted to pay the due diligence fee and initial earnest money deposit by personal check. Which of the following statements is correct in this situation? Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Both fees may be paid by a single personal check to the escrow agent. Both fees may be paid by personal check, but each must be paid separately in checks made out to different people. The due diligence fee may be paid by personal check, but the earnest money deposit may not. The earnest money deposit may be paid by personal check, but the due diligence fee may not.
While both fees may be paid using a personal check, the due diligence fee check must be made payable to the seller, while the earnest money check must be made payable to the escrow agent.
In North Carolina, the NC Standard Form 2G Guidelines to Offer to Purchase and Contract is provided to help brokers and attorneys who are _______. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Completing the Additional Provisions Addendum on behalf of buyers and sellers Completing the Back-Up Contract Addendum, Standard Form 2A1-T, on behalf of buyers and sellers Completing the Offer to Purchase and Contract, Standard Form 2-T, on behalf of buyers and sellers Completing the Offer to Purchase and Contract - Vacant Land/Lot, Standard Form 12-T, on behalf of buyers and sellers
While using the Offer to Purchase and Contract, Standard Form 2-T, you should refer to the NC 2G Guidelines to Offer to Purchase and Contract, a document provided to help brokers and attorneys completing this form on behalf of buyers and sellers. Any time you're uncertain about how to properly complete this form, you should consult with a North Carolina real estate attorney.
Tevin just rented a condo on the coast for a weekend getaway. He signed the rental agreement, which included both his and the landlord's rights and obligations, as well as the amount of rent, security deposit, and additional fees. What is missing from this contract? Topic: Other North Carolina Laws and Practices Subtopic: Laws protecting residential tenants Information on how the deposit will be held Resident statement Services and utilities provided The name of the real estate firm.
While you may see all of these things on a vacation rental agreement, the only other information that is required on the form is how the deposit will be held.
The North Carolina Response to Buyer's Offer permits the seller to _______. Topic: Other North Carolina Laws and Practices Subtopic: Sales contracts and related procedures Notify the buyer of any extraordinary circumstances for termination, such as death Recommend changes to the buyer's offer Submit a counter-offer the buyer's offer Tell the buyer the offer has expired
Without nullifying the offer that's on the table, the seller may make recommendations to make the offer worthy of being accepted.
Which of the following statements regarding North Carolina real estate brokers is TRUE? Topic: North Carolina Commission Rules and License Law Subtopic: Requirement for a license All brokers are required to be supervised by a broker-in-charge. All business entities engaging in real estate brokerage must hold a real estate firm license. Every North Carolina real estate office must have a designated provisional broker. Most brokers who don't have the broker-in-charge status elect to work for another broker or brokerage firm.
d. Although a broker is allowed to work independently, NCREC rules require most brokers operating on their own to also have a broker-in-charge license status. For that reason, most brokers who don't have the broker-in-charge status elect to work for another broker or brokerage firm.
