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*****North Carolina 75-Hour Broker Pre-licensing Final Exam (PASSED Attempt) Questions With Complete Solutions** _______ are artificial attachments to land that include items such as fencing, buildings, and walkways. Emblements Encroachments Improvements Levies Correct Answers - Improvements: are artificial attachments to land that include items such as fencing, buildings, and walkways.
- Encroachments: refers to a situation in real estate where a property owner violates the property rights of his neighbor by building on or extending a structure to the neighbor's land or property intentionally or otherwise. A _________ is typically used to prove that there are no encroachments on a property. Abstract of title Chain of title Deed Survey Correct Answers SURVEYS:
- determine property boundaries
- determine whether there are ENCROACHMENTS on the property.
According to the 10-second rule, before opening the door to a property, take two seconds to ______. Look back and see if you parked in a well-lit location or if someone can block you in. Reach for your pepper spray. See if someone is following you and notice if you have an uneasy feeling. Take a phone call. Correct Answers See if someone is following you and notice if you have an uneasy feeling Barney defaulted on his mortgage, and his lender is preparing to foreclose. Which type of foreclosure is typically used when a mortgage is used as the security instrument? Judicial foreclosure Non-judicial foreclosure Property forfeiture Trustee foreclosure Correct Answers Judicial foreclosure Co-ownership with inheritance rights is what kind of real property ownership? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty Correct Answers Tenancy in common: Co-ownership with inheritance rights Easements are a type of encumbrance that can affect a property. Which of the following is true about easements?
This contract is voidable by the victim because 1 of the parties accepted the contract under duress, which means that party was forced and didn't consent. If buyers have a loan-to-value ratio of 90/10, what does it mean? Their loan is 10% of the value of the real estate used as collateral, and they're obtaining a second mortgage for 90%. Their loan is 90% of the value of the real estate used as collateral, and they're putting 10% down. The property is only worth 90% of the amount loaned. They're putting 10% down and pulling 90% from their IRA. Correct Answers Their loan is 90% of the value of the real estate used as collateral, and they're putting 10% down. In a real estate transaction, which of the following is an example of consideration? Buyer's credit score Legal purpose Promise Property taxes Correct Answers Promise Even a promise—to do something or to not do something—is consideration. In North Carolina, the duty of accounting in a timely manner for money or property received is owed to whom? All parties in a transaction Only clients The buyer The seller Correct Answers All parties in a transaction
In order for North Carolina real estate broker Landon to accept valuable compensation, what two conditions must be met? The compensation must be fully disclosed to relevant parties in a timely manner. The compensation must come from another actively licensed real estate professional and must be disbursed in a timely manner. The compensation must come from a transaction in which he is directly involved as a representative of a principal, and it must be fully disclosed to relevant parties. The compensation must come from his broker-in-charge or brokerage firm and must be disclosed to the NCREC. Correct Answers The compensation must be fully disclosed to relevant parties in a timely manner. In what time frame would a North Carolina broker be required to deliver an instrument, like a contract or offer, to the relevant parties? Immediately upon receipt Within five days of the broker's receipt of the executed document Within three days of the broker's receipt of the executed document Within three days of the execution of the document Correct Answers Within 3 days of the broker's receipt of the EXECUTED document
A full disclosure of important information regarding the time share project, characteristics of the project, any material circumstances that affect it, and the specific time share being offered. A list of limitations that all time share owners must honor when using the jointly available timeshare facilities. A list of the other parties participating in the time share for their specific unit and a breakdown of the calendar days each party will be in possession Correct Answers A full disclosure of important information regarding the time share project, characteristics of the project, any material circumstances that affect it, and the specific time share being offered North Carolina broker Jim just opened a new trust account. If Jim is in compliance with NCREC's regulations, which one of the following statements must be true about the trust account? It is a predictive demand account, in which Jim will indicate a withdrawal date when he deposits funds. It is designated as a trust account that contains the words "trust account" or "escrow account" on all documentation. It is in a privately insured institution in the same county as Jim's brokerage. It is not an interest-bearing account. Correct Answers It is designated as a trust account that contains the words "trust account" or "escrow account" on all documentation. North Carolina trust accounts must be designated as such and include either the words "trust account" or "escrow account" on
all associated documentation. Additionally, they must be demand deposit accounts, located in North Carolina at a federally insured institution, and interest-bearing only if the funds' owner(s) provides consent. North Carolina broker Miles has submitted an offer from his client, John, on Kayla's two-story home. Kayla signs the contract, accepting the offer, and then calls Miles to tell him she's accepted it. Miles tells John the offer has been accepted. The closing, on June 2, goes well, and the property is transferred that day. At what point did this offer become a legally binding contract? Once the closing occurred and the property was transferred When Kayla called Miles to tell him she accepted the offer When Kayla signed the offer to indicate her acceptance of it When Miles told John the offer was accepted Correct Answers When Kayla called Miles to tell him she accepted the offer
- Acceptance is considered to have occurred once the last party's acceptance has been communicated to the other party or the other party's agent.
- In this case, that means it occurred once seller Kayla communicated her acceptance of the offer to Miles, the buyer's agent. North Carolina licensee Karen is about to prepare a CMA for a fee. Which of the following must be true?
Raymond's employing broker told him that he doesn't need to disclose that the former owner of a new listing was a sex offender. This is because _______. It might offend some buyers It's a latent defect It's a stigma that need not be disclosed It's public knowledge Correct Answers It's a STIGMA that need NOT be DISCLOSED In North Carolina, stigmatizing information about a property is NOT a material fact and licensees DON'T need to disclose it. Tanner is selling his North Carolina home to the Silvas for $200,000. Which of the following is true regarding the state excise taxes? Tanner will be paying $1,000 to the Silvas' lender in excise taxes before the sale contract may be signed. Tanner will be paying $400 in excise taxes to the register of deeds before the deed can be recorded. The Silvas' mortgage lender will be paying $2,400 in excise taxes to the county tax assessor before they'll finalize the loan. The Silvas will be paying $2,000 in excise taxes to the county treasurer before the deed can be recorded. Correct Answers Tanner will be paying $400 in excise taxes to the register of deeds before the deed can be recorded. The _______ provides consumers with remedies, should they become victims of discrimination in the sale, rental, or financing of housing.
Architectural Barriers Act Civil Rights Act Equal Credit Opportunity Act Fair Housing Act Correct Answers Fair Housing Act: provides consumers with remedies, should they become victims of discrimination in the sale, rental, or financing of housing. The borrower's closing costs and down payment have changed from the Loan Estimate, and the seller's credit has increased. Which section on page three of the Closing Disclosure can help borrowers identify information that has changed from the Loan Estimate? Adjustments Calculating Cash to Close Summaries of Transactions Total Closing Costs Correct Answers Calculating Cash to Close The section labeled "Calculating Cash to Close" explicitly lists and explains any changes from the Loan Estimate. The North Carolina Fair Housing Act protects which individuals who are not protected under federal law? Federal employees First responders Low-income individuals Teachers Correct Answers Low-income individuals
The system heats an area of up to 80,000 square feet, so it's likely designed for a commercial building. Correct Answers The system has a relatively standard capacity & will optimize 85% of the fuel it burns to deliver heat. What are mortgage-backed securities? Homes that are in jeopardy of being foreclosed on Institutions that make mortgages available to the public Loans issued to consumers when a property is being used as collateral Mortgages that are pooled together and sold to investors Correct Answers Mortgages that are pooled together and sold to investors What are the possible penalties for violating the North Carolina Time Share Act? Non-issuance, non-renewal, or revocation of the time share registration only. Non-issuance, non-renewal, or revocation of the time share registration, plus a fine of $500 per violation. Non-issuance, renewal, or revocation of the time share registration, plus a fine of $500 for each violation and possible jail time. Non-issuance, renewal, or revocation of the time share registration, plus a fine of as much as $50. Correct Answers Non-issuance, non-renewal, or revocation of the time share registration, plus a fine of $500 per violation
--> No jail time is involved, but penalties are hefty & can include non-issuance, non-renewal, or revocation of the time share registration, plus a fine of $500 per violation. What duties do PRINCIPALS owe to real estate agents in North Carolina? Accounting and compensation Accounting and loyalty Good faith and compensation Good faith and loyalty Correct Answers Good faith & Compensation What is equity build-up? Additional payments that investors make to decrease the amount of principal owed on a loan The increase in value of the property beyond what the investor originally invested as a down payment The purchase of multiple properties to increase an investor's overall holdings The use of one investment to finance another Correct Answers The increase in value of the property beyond what the investor originally invested as a down payment What is the primary goal of the 10-second rule? To pay attention and assess your surroundings To prevent you from eating when you are bored To take a moment to calm down and put on a professional face To waste 10 seconds of your time Correct Answers the primary goal of the 10-second rule: To pay attention and assess your surroundings.
A description of the land that specifies the boundaries and location of a specific piece of real property An object used as a boundary or starting point for a metes and bounds description A professional, on-site measurement of the lot lines and dimensions of a property, including the location of any improvements (such as a house) on the lot, any encroachments that may exist, and any easements of public record The street address of a property, including the city, state, and zip code (also known as a "mailing address") Correct Answers A description of the land that specifies the boundaries and location of a specific piece of real property What's a subordination agreement? It's a document that's produced by the court during bankruptcy trials that states the order of payment for creditors. It's an agreement that a previous lender signed allowing a later lender to take over the primary, or first, loan position. It's an agreement that borrowers sign to determine the order or priority for lien holders against their property. It's an agreement the lender signs saying it will provide title to the property to the borrower when the loan is paid off. Correct Answers SUBORDINATION agreement:
- an agreement that a PREVIOUS LENDER signed allowing a LATER LENDER to take over the PRIMARY or FIRST, loan position.
- is entered into when a lienholder that was in the first position agrees to subordinate that position to another lien holder. Satisfaction of Mortgage: It's an agreement the lender signs saying it will provide the title to the property to the borrower when the loan is paid off. When landowners assert their right to have their land held in place by neighboring land without the land slipping, caving in, or being subject to a landslide, they are asserting _______. Lateral support Subjacent support Subservient support Subsurface rights Correct Answers Lateral support Lateral support gives landowners the right to expect that their land will be held in place by adjoining land. When you visit a seller for a pre-listing appointment, which of these questions would be good to ask? How old is the roof? What brokerage commission did you have in mind? What sales price do you have in mind? Who is your lender? Correct Answers How old is the roof?
Which of the following describes the appropriate capital gains exclusion for a taxpayer's primary residence? The taxpayer lived in the home at least five of the seven years immediately preceding the sale, with an exclusion of up to $125,000 for single taxpayers, $250,000 for couples filing jointly. The taxpayer lived in the home at least five of the seven years immediately preceding the sale, with an exclusion of up to $250,000 for single taxpayers, $500,000 for couples filing jointly. The taxpayer lived in the home at least two of the five years immediately preceding the sale, with an exclusion of up to $125,000 for single taxpayers, $250,000 for couples filing jointly. The taxpayer lived in the home at least two of the five years immediately preceding the sale, with an exclusion of up to $250,000 for single taxpayers, $500,000 for couples filing jointly. Correct Answers The taxpayer lived in the home at least 2 of the 5 years immediately preceding the sale, with an exclusion of up to:
- $250,000 for SINGLE taxpayers,
- $500,000 for COUPLES filing jointly. Which of the following is a violation of federal fair housing law? A landlord refuses to rent to anyone under the age of 30.
A private homeowner advertises a private house share using the phrase: "No minorities." A private homeowner lives in a duplex and won't rent the other half to a pregnant woman. A private homeowner lives in a triplex and won't rent one of the units to a family. Correct Answers A private homeowner ADVERTISES a private house share using the phrase: "No minorities." Discriminatory advertising is never allowed. Which of the following is an example of a metes and bounds description? 123 Roanoke Street Any Town, ST 98765 "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." Lot 6 of Block 3 of the Meridian subdivision ... S ½ SE ¼ NW ¼ Section 2 ... Correct Answers A METES & BOUNDS DESCRIPTION has a point of BEGINNING which is where the description begins. "Beginning at the iron pin ... " --> "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." Which of the following is the primary goal for a consumer when reviewing a Loan Estimate? Check for accuracy of personal and transaction information and understanding of the loan terms. Determine which costs can be negotiated with the seller.
