Download NC Post-Licensing Section 302 Latest 2025-2026 (Verified) and more Exams Law in PDF only on Docsity!
NC Post-Licensing Section 302 Latest 2025- 2026
(Verified)
Uniform Electronic Transactions Act (UETA) - correct answer>>(NC) UETA: Legislation validates electronic contracts / other documents / and signatures. Provides that they will not be denied validity & enforce-ability solely b/c they are in electronic form. (Federal) E-Sign: Validates electronic contracts & signatures in transactions & provides they will not be denied validity & enforce-ability solely b/c they are in electronic form. Offer to Purchase & Contract - correct answer>>(Form 2-T) The most common type of contract used for the sale of real property in NC. Also called a sales or purchase contract. 1 - Installment Land Contract 2 - Option to Purchase Contract SALES contracts can only be drafted by LAWYERS!!! (legal consideration) Formed jointly between the NC Bar and the NC Realtors. Who must sign the offer to purchase & contract - correct answer>>All parties involved MUST sign the contract The legal effect of a counter offer - correct answer>>A counter offer is a rejection of the offer and is considered to be a new offer. Counteroffer - correct answer>>An offer made to an original offer which contains NEW or DIFFERENT TERMS/CONDITIONS not included in the original offer. The counteroffer (once COMMUNICATED) has the effect of rejecting the original offer which cannot subsequently be accepted unless renewed by the original offer. Type of contract used on single-family homes? - correct answer>>Standard Offer to Purchase & Contract Type of contract used on 5+ dwellings? - correct answer>>Must use a commercial contract How do you form a CONTRACT? - correct answer>> 1 - Offeror (buyer) makes an offer to the Offeree (seller) 2 - the Offeree accepts the offer 3 - The offeree communicates to the buyer acceptance of offer IF NOT COMMUNICATED = NO DEAL COMMUNICATION OCCURS EITHER TO THE AGENT / PARTY (TREATED AS THE SAME!!!!)
Communication? - correct answer>>Use of any LEGAL method 1 - Verbal 2 - Personal Delivery 3 - Mail 4 - Fax/Electronic Communication format When anything is communicated to the AGENT it is the SAME as if it has been communicated to the CLIENT!!!! BUT if you communicate to your agent and he/she does not communicate to the other agent it is as if you communicated with yourself. MAILBOX RULE - correct answer>>Rule of law that states once an offeree's written acceptance is mailed (PLACED IN THE POSTAL SERVICE OUTSIDE THE CONTROL OF THE OFFEREE!!!) The offer is considered ACCEPTED as of the date/time of the mailing (even though the actual acceptance of the offer is not received for several days) The offeror CANNOT withdraw or revoke his offer AFTER an acceptance has been mailed The offeree CANNOT withdraw or revoke his acceptance after it has been mailed. Types of forms (contracts) allowed - correct answer>> 1 - Most common OTPC (2-T) 2 - Any other legally created one (then that is the only form that is used) *** Talk to an attorney if any unusual or bizarre questions/items. *** Client may do anything that they would like to a contract as long as it is written in their hand that is making ANY changes to the document. 3 Required Dates on Contracts (A012) - correct answer>> 1 - Date of Offer 2 - Date of Acceptance 3 - Date of Settlement Buyer does NOT show up at closing - correct answer>>14 day window After 14 days of not showing up the Seller can SUE Lead Based Paint Addendum - correct answer>>Purpose: Shows what a SELLER "knows" about the property NOT stating that lead isn't in the house. EASEMENTS - correct answer>>A right to the use of the lands owned by another person for a special purpose (right of way, etc.) Unknown easements do NOT void contracts They do not affect the value of the contract/property Contract is still good.
Real estate guidelines suggest 2 but legally only 1 is needed. You may make as many as you feel is needed. Real Estate Settlement Procedures Act (RESPA) - correct answer>>Prohibits: Broker / Agent from receiving anything of VALUE from the SETTLEMENT SERVICE PROVIDER (SSR) Right of 1st Refusal - correct answer>>An owner of a property does not bind himself to sell under this agreement He promises another that IF he decides to sell at some future time - the promisee will receive the FIRST chance to buy / the opportunity to MATCH OFFERS to purchase from 3rd parties Often included as a provision in leases! Pro-Rate Taxes - correct answer>>Paid before Closing: Credit to the seller/Debit to the buyer Paid after Closing: Debit to the seller/Credit the buyer Paid at Closing: (double debit method) Debit to the seller/ Debit to the buyer EXCISE TAX - correct answer>>Seller Pays = Sales Prices / 500 Round Up to the nearest dollar Deed Prep - correct answer>>Seller Pays Back up contract addendum - correct answer>>Contract in a secondary position until the primary contract is either terminated or performed Contract Valid - correct answer>>Legally enforceable agreement between 2/more parties based on legal consideration OFFER DOES NOT MEAN A CONTRACT - correct answer>>An offer does not mean that there is now a contract Contingency Provisions - correct answer>>Always over rules a contract Concurrent Multiple Offers - correct answer>>All offers should be presented to the seller at the SAME Time!
Broker cannot disclose PRICE or other MATERIAL TERMS in an OFFER to a competing party Must send copies within 5 DAYS!!!! Counteroffer = rejection of original offer Response to buyers offer (Form 340-T) = used to formally reject an offer Termination of Offers - correct answer>>Mailbox rule does NOT apply Must be PHYSICALLY in their possession!!!!! What does a response to offer do? - correct answer>>It is a rejection of the offer. It is now open for negotiations. Statute of Frauds - correct answer>>NC State law - contracts for the sale of real estate must be IN WRITING in order to be ENFORCEABLE at law Express Contracts - correct answer>>Contract stated in WORDS: Orally or in WRITING Implied Contracts - correct answer>>Contract that is based upon CONDUCT/ACTIONS: Not a result of an express agreement b/t parties. Valid Contracts - correct answer>>Having binding/legal force Legally sufficient & authorized by LAW Void Contracts - correct answer>>Contract is UNENFORCEABLE Has NO force / effect Voidable Contracts - correct answer>>Contract is capable of being judged void BUT is not Void UNLESS ACTION is taken to make it so. Can be voided by one of parties based upon legal terms NC 22-2 (Lease Land Selling) - correct answer>>Any selling of lease land exceeding 3 years will be VOID unless put in writing and signed REAL PROPERTY - correct answer>> 1 - Street Address 2 - Plat Reference 3 - PIN/PID 4 - Other Description 5 - Reference to Recorded Deed (if known)
(1) contracts for the sale or lease of, or a mortgage on, real property (e.g., land, fixtures); (2) contracts that cannot, by their terms, be performed within one year after the date the contract was formed; (3) collateral contracts, such as promises to answer for or guaranty the debt or duty of another person; (4) promises made in consideration of marriage (i.e., prenuptial agreements); and (5) contracts for the sale of goods valued at $500 or more. Cancellation - correct answer>>Buyer can cancel 2 days into a 5 day period and does not need the sellers permission to get the DD or EM back. Putting offer on second property does not terminate offer on first property. Offer Period - correct answer>>Negotiations, there is no contract and buyer can walk away. No need to have sellers permission to return EMD or DDF Counter offer kills previous offer. Unfair and Deceptive Trade Act - correct answer>>Applies to brokers who advertise a false delivery date for amenities to induce the buyer to purchase the house in a new subdivision. Can a buyer force a seller to sell by bringing a lawsuit of specific performance. - correct answer>>True Offer to Purchase OTPC 2T - correct answer>>Contract is not executed until the deed is recorded. That is when the keys should be given. Use for resale, condo, townhouse, single family. It is NOT used for lease purchase, vacant land, commercial or office condo. Lease Purchase Form - correct answer>>Lease Purchase Forms do not exist. Advise owner to seek counsel from an attorney. Reasons to terminate during due diligence. - correct answer>>Buyer may not be able to get financing. If the house is destroyed - correct answer>>Buyer can receive a full refund of DD and EM by delivery of written notice.
The buyer can proceed with the sale and collect insurance damages. Contract changes - correct answer>>Initial. Date and time stamp if same day. Can a broker earn a commission if their license is Expired or Inactive - correct answer>>Yes if a broker was NOT inactive or expired when they processed the OTPC. First 8 hours of CE must be done - correct answer>>Before 2nd renewal Question 26 - correct answer>>B Seller settlement information brokers provide at closing. - correct answer>>Copy of OTPC and sellers mortgage information. Provide proof of repairs/invoice. Title - correct answer>>Non-lawyers cannot answer simple questions on title issues, however the can receive and disperse funds, direct parties where to sign and present documents needed to complete closing. Regulation Z - correct answer>>If you put trigger term in AD you have to include the APR (annual percentage rate) Closing Document - correct answer>>Brokers responsibility to notify all parties including lender if there is an error. Contract - correct answer>>Deliberate agreement between two or more competent parties supported by legal consideration. to perform or abstain from an act. 4 Essential Elements to every contract - correct answer>>CLAP Consideration Legal Act Agreement Performance Voidable - correct answer>>When agreement is entered into by a person who is impaired. Void - correct answer>>Lacks an element and a contract was never formed. Bilateral - correct answer>>Two promises, both parties bound
or settlement or occupancy by the buyer in a case of sale or exchange or contract whichever comes first. Does seller have to use licensed contractors to make good on repairs? - correct answer>>Depends on what Buyer/Seller agree to. Must be in good and workman order. Failure to deliver funds - correct answer>>Can bring one day after but then must be "Good Funds" Cash, Certified Check, etc. No personal checks. Innure - correct answer>>Cause to be accepted. Attorney's role at closing - correct answer>>Chosen by the buyer. Coordinate the process, issues validity of title opinion, prepares closing documents, conducts closing settlement. Seller Broker Provide the following to the Attorney - correct answer>>Copy of sellers Deed, accurate HOA info, info on sellers title insurance, current contract, bills & invoices to be paid at closing Attorney must verify all funds in excess of? - correct answer>>$5, Escrow can be transferred to the attorney no sooner than? - correct answer>>10 days RESPA does not apply to - correct answer>>Cash transaction, vacant land, commercial transaction, seller carrybacks. Loan estimate should be received within - correct answer>>3 days (Mon - Sat) and should provide APR and TILA along with Consumer Settlement Cost Booklet. Only fee prior to issuance of loan estimate is - correct answer>>Credit Report Agency that enforces RESPA - correct answer>>Consumer Financial Protection Bureau. They are sheriff of all loans. TRID (final disclosure) due - correct answer>>3 days before settlement. If receipt on Thursday than close on Monday (Fri/Sat/Mon) If the following changes a new Closing Document is required. - correct answer>>APR increases, pre-payment penalty added, basic loan changes
Monies recieved by the provisional broker must be delivered to the BIC when? And BIC must deposit by when? - correct answer>>1. Immediately, 2. 3 banking days. When should a vacant land contract not be used? - correct answer>>When subdividing a lot. A subdivision in NC exists when a parcel of land is subdivided into? Exceptions are? - correct answer>>Two or more lots. No lot is smaller than 10 acres, a division of up to 2 acre lot into as many as 3 lots by a single owner. Interstate Land Sales Contract applies? - correct answer>>When sale of lots occurs across state lines. Only applies to developments of lots of 25 or more. HUD Property reports contain - correct answer>>Distance to paved roads Number of homes occupied Soil conditions and septic Type of title Existence of Liens
