POST 303 - Section 4
If a commercial real estate broker lien has not been satisfied, a broker must file a suit to enforce the lien within: 12 months of filing the lien 18 months of filing the lien 12 months of closing the sale 24 months of filing the lien
18 months of filing the lien
What is the timeshare 5x5 rule: 5 or more time periods, over 5 months, 5 day right of recission, $500 fine 5 or more time periods, over 5 years, 5 day right of recission, $5,000 fine 5 or more time periods, over 5 years, 5 day right of recission, $500 fine 5 or more time periods over 5 months, 5 day right of recission, $5,000 fine
5 or more time periods, over 5 years, 5 day right of recission, $500 fine
In a lease transfer transaction, a commercial real estate lien may be filed no later than: 30 days following the tenant's possession 50 days after the due date of a payment 90 days following the tenant's possession 30 days after the due date of a payment
90 days following the tenant's possession
Which of the following regarding commercial leases is FALSE: There is no statute for commercial leases, they are completely negotiable A common consideration is how the tenant will improve the land A common consideration is school zoning for the tenant's children A common consideration is landlord paid upfitting
A common consideration is school zoning for the tenant's children Because this is commercial real estate, the lease will not pertain to the tenant's family being raised in that area, including school zoning. (Learning Objective: Describe special considerations for commercial property)
By definition, an upfit is: A customization of the space to fit the needs of the tenant at the owner's expense A customization of the space to fit the needs of the tenant at the tenant's expense A customization of the space to fit the needs of the owner at the tenant's expense A customization of the space to fit the needs of the owner at the owner's expense
A customization of the space to fit the needs of the tenant at the owner's expense
Which of the following would NOT be considered a specialty property: A church A football stadium A warehouse A hospital
A warehouse
What is common among residential and commercial financing: Available without discrimination of race or gender Length of the financing term Balloon payments Interest rates
Available without discrimination of race or gender
All of the following describe a townhome EXCEPT: Individual ownership of the exterior of the unit plus the land on which the unit sits Usually horizontally attached and share a common wall Often shared use of common areas Common areas are owned by the homeowners
Common areas are owned by the homeowners
What is the definition of "Limited Common Areas" in condominiums: Common areas in a condo that are reserved for use only by non-residents Common areas in a condo that are reserved for use by the entire community Common areas in a condo that are reserved for use by one or more units to the exclusion of other units Common areas in a condo that are owned by the owners association
Common areas in a condo that are reserved for use by one or more units to the exclusion of other units Limited common areas are reserved for use by a single individual or a group within the community but that exclude other units in the community. (Learning Objective: Compare and contrast condominiums and townhomes)
What ancillary issue is categorized under linkages: Units occupied Commuting time Pipeline Growth trends
Commuting time
What policy typically covers common areas in a condominium: HO6 policy Condo master policy Homeowners insurance Owner's association insurance
Condo master policy
Of the following pass through provisions, which one does NOT pass through to the tenant: Taxes Insurance Utilities Deed
Deed
The correct sequence for determining a property's available net acres is: Visually inspect whether the property is within a public right of way, examine the deed, and ask whether the seller has gained or lost property since the deed Examine the deed, ask whether the seller has gained or lost property since the deed, and visually inspect whether the property is within a public right of way Examine the deed, visually inspect whether the property is within a public right of way, and ask whether the seller has gained or lost property since the deed Ask whether the seller has gained or lost property since the deed, visually inspect whether the property is within a public right of way, and examine the deed
Examine the deed, ask whether the seller has gained or lost property since the deed, and visually inspect whether the property is within a public right of way The broker should first examine the deed or survey of the property. Then, the broker should inquire whether the seller has expanded or decreased the size of the property since the deed or survey. Next, the broker should examine whether any of the property falls within a public right of way or street. (Learning Objective: Summarize commercial property classifications)
The definition of a condominium is when the owners have: Ownership of the unit and common area Fee simple ownership of the unit and common area Fee simple ownership of the unit and shared ownership and the common area Fee simple ownership of the unit but no ownership of the common area
Fee simple ownership of the unit and shared ownership and the common area
According to the NCREC discipline guidelines section 93A 54, the NCREC may do all of the following to a project broker EXCEPT: Reprimand Suspend Fine Revoke
Fine
Which of the following types of property are becoming increasingly specialized: Hotels Single-family homes Restaurants Car dealerships
Hotels Hotels and multifamily apartment properties are becoming increasingly specialized due to growing nationalization and institutional investment. (Learning Objective: Summarize commercial property classifications)
Which of the following is FALSE about the North Carolina Condominium Act (1986): Units are separately taxed and assessed Must be a unit owners association prior to transfer of the first unit Deposits must be held in a trust account during cancellation period If cancelled during the cancellation period, all deposits will forfeit a penalty
If cancelled during the cancellation period, all deposits will forfeit a penalty There is no penalty for cancellation during this period. (Learning Objective: Describe the North Carolina Condominium Act and the Planned Community Act)
Which of the following properties may NOT be subject to a commercial real estate broker lien: A mine A house on land that has been rezoned as industrial An office building In a region of the state where there are no regulations governing property use, a new structure that will contain a supermarket in one year
In a region of the state where there are no regulations governing property use, a new structure that will contain a supermarket in one year
Under an industrial gross lease, a tenant is responsible for: Landscaping Paving of parking areas HVAC installation Insurance
Landscaping
All of the following are particular rental income issues regarding office space rentals EXCEPT: Laundry provisions Escalator provisions Pass through provisions Upfits
Laundry provisions With the exception of laundromats, laundry provisions are generally a residential concern, and do not factor into office space income issues. (Learning Objective: Summarize commercial property classifications)
Mark incorrectly files a commercial broker lien and pursues enforcement. He may be: Charged with a felony Entitled to the broker fee if he correctly refiles the lien Liable to pay the owner's attorneys' fees Required to pay the owner a sum equivalent to the broker fee
Liable to pay the owner's attorneys' fees In any proceeding to enforce a lien, the losing party (or a party that has wrongfully filed a lien) must bear the costs of the proceedings, including attorneys' fees. (Learning Objective: Define a commercial real estate broker lien)
When permanently affixing a manufactured home to the land, all of the following requirements must be met EXCEPT: Ownership of the land Remove hitch, wheels, and axles Acquire an affidavit of affixture Location must be in a neighborhood
Location must be in a neighborhood The location of the affixture is irrelevant to its being affixed, being located within a neighborhood is unnecessary. (Learning Objective: Identify characteristics of manufactured and modular housing)
What is a characteristic of a Class A space: No parking or security Modern features Limited amenities Older than 30 years
Modern features
What is a characteristic of a Class A space: Older than 30 years Limited amenities Modern features No parking or security
Modern features
What distinguishes a modular home from a manufactured home: Manufactured homes become real property immediately upon purchase Modular homes are personal property until permanently affixed to the ground Modular homes are built in sections and assembled on site whereas manufactured homes are assembled offsite and permanently affixed to the ground Manufactured homes are built in sections and assembled on site whereas modular homes are built offsite and permanently affixed to the ground.
Modular homes are personal property until permanently affixed to the ground Manufactured homes are personal property, built offsite, and become real property when permanently affixed to the ground, whereas modular homes are built in section and assembled on site, becoming real property immediately. (Learning Objective: Identify characteristics of manufactured and modular housing)
Regarding timeshare cancellation: The buyer may cancel for 30 days after the contract execution The cancellation period can be waived The buy forfeits any money paid upfront Money must be refunded within 30 days of the date the contract executed
Money must be refunded within 30 days of the date the contract executed
For a sale, a commercial real estate broker lien should be filed: No more than 30 days prior to the closing date No more than 60 days prior to the closing date No more than two weeks prior to the closing date Within 30 days after the closing date
No more than 30 days prior to the closing date A commercial real estate broker lien should be filed within the 30 days prior to the closing date, as a lien filed earlier is only available if the owner breaches the brokerage services agreement. (Learning Objective: Define a commercial real estate broker lien)
What is a characteristic of a Class C space: Older than 30 years Well maintained Modern features Plentiful amenities
Older than 30 years
What is NOT a factor that contributes to the transaction cycle time of commercial real estate being much longer than residential real estate: Property selection Open houses Due diligence Analysis
Open houses
The Owners' Association Disclosure Addendum must include information about: Satisfied judgments involving the development Pending lawsuits against the owners' association The average sale price of other units in the development Fees owed to the seller by the owners' association
Pending lawsuits against the owners' association
Regina has purchased some farmland in a remote region. The only way to access the land is via a long driveway that is not described in writing or on the public record. This example best demonstrates: The driveway permit process Legal access Practical access A transportation improvement plan
Practical access
A retail space that is used to offer and sell goods or services to the consuming public is a retail property. What are the three major categories of retail property: Shopping centers, stand-alone retail facilities, and casinos Stand-alone retail facilities, strip or cluster retail facilities, and churches Strip or cluster retail facilities, shopping centers, and stand-alone retail facilities Shopping centers, churches, and casinos
Strip or cluster retail facilities, shopping centers, and stand-alone retail facilities
A retail space that is used to offer and sell goods or services to the consuming public is a retail property. What are the three major categories of retail property: Shopping centers, churches, and casinos Strip or cluster retail facilities, shopping centers, and stand-alone retail facilities Stand-alone retail facilities, strip or cluster retail facilities, and churches Shopping centers, stand-alone retail facilities, and casinos
Strip or cluster retail facilities, shopping centers, and stand-alone retail facilities Casinos and churches are not spaces that are used to offer and sell goods or services to the consuming public. (Learning Objective: Summarize commercial property classifications)
Which of the following is NOT a major category of commercial property: Offices Retail Subdivisions Industrial
Subdivisions
In the case of a conflict in the sale of a condominium between the contract and the Owners' Association Disclosure Addendum, which document controls: The contract The Addendum The contract, unless the conflict involves the description of the property or the identity of the seller or buyer The Addendum, unless the conflict involves the description of the property or the identity of the seller or buyer
The Addendum, unless the conflict involves the description of the property or the identity of the seller or buyer
Liz wants to buy a manufactured home as a vacation home. It is a new unit with a one-year warranty and a water and sewage system. She plans to permanently place the home on a rental site in a manufactured home park. Why would she be unable to qualify for a Title I manufactured home loan: The home will be permanently placed on a site She does not own the site where she will place the home The home won't be her primary residence The warranty must be at least two years
The home won't be her primary residence To qualify for a Title I manufactured home loan, a property must be the applicant's primary residence. (Learning Objective: Differentiate financing issues between manufactured and modular housing)
Which of the following characteristics of Geoff's home meets the criteria for a manufactured home: The property is 400 square feet The property does not have a permanent chassis The property is 35 feet in length The property does not include a plumbing system
The property is 400 square feet
Which of the following is FALSE about the North Carolina Condominium Act (1986): Disclosure prior to purchase contract Requires public offering statements There is a seven day right of recission on resold condominiums There is a seven day right of recission on new condominiums
There is a seven day right of recission on resold condominiums There is no 7 day right of recission on resale condos. (Learning Objective: Describe the North Carolina Condominium Act and the Planned Community Act)
Which of the following is FALSE about the North Carolina Condominium Act (1986): There is a seven day right of recission on new condominiums There is a seven day right of recission on resold condominiums Requires public offering statements Disclosure prior to purchase contract
There is a seven day right of recission on resold condominiums There is no 7 day right of recission on resale condos. (Learning Objective: Describe the North Carolina Condominium Act and the Planned Community Act)
Which of the following is TRUE regarding the certificate of registration required prior to the sale of a timeshare: Can involve vouchers and divided interests Can involve systems using points Can involve vacation licenses There is no penalty not to register the units
There is no penalty not to register the units
Which of the following is TRUE regarding the certificate of registration required prior to the sale of a timeshare: There is no penalty not to register the units Can involve vacation licenses Can involve systems using points Can involve vouchers and divided interests
There is no penalty not to register the units
Rental rates for office space will often omit what aspect: Lobbies and elevators Restrooms Total square footage Per square foot for rentable area
Total square footage
Which of the following is a misdemeanor penalty regarding timeshares: Failure to register the project Failure to register each unit Failure to properly record the timeshare interests Violation of any other timeshare statutes
Violation of any other timeshare statutes A,B,C are all felonies, violation of other timeshare statutes is a misdemeanor. (Learning Objective: Analyze timeshare ownership in North Carolina)
Factors that affect retail environments include all of the following EXCEPT: Income levels Weather Traffic Patterns Location
Weather
Types of office property generally do NOT include: Strip malls Apartment buildings with 5 or more units Campus buildings Office Condominiums
Apartment buildings with 5 or more units
Timeshare public offering statements must include all of the following EXCEPT: Total financial obligation Management agreements Term of the timeshare Background information on all other timeshare residents
Background information on all other timeshare residents
Which is the most complex classification of commercial property: Land Industrial Retail Office
Land
Which is the most complex classification of commercial property: Office Retail Industrial Land
Land
Which broker is NOT entitled to a commercial real estate broker lien: Henry, who holds a provisional broker license in North Carolina Su-young, who holds a non-provisional broker license in North Carolina Antoinette, who lives in Virginia and holds a North Carolina Limited Non-Resident Commercial License Richie, who lives in South Carolina and holds a South Carolina broker license
Richie, who lives in South Carolina and holds a South Carolina broker license
Which of the following is TRUE regarding timeshares in North Carolina: timeshares are considered real estate, can be sale or lease, and the right to occupy can be distributed 5 or more separate time periods in 5 years timeshares are considered real estate, can only be sale, and the right to occupy can be distributed 5 or more separate time periods in 5 years timeshares are considered real estate, can only be lease, and the right to occupy can be distributed 5 or more separate time periods in 5 years timeshares are not considered real estate
timeshares are considered real estate, can be sale or lease, and the right to occupy can be distributed 5 or more separate time periods in 5 years
