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302 NC POST LICENSING EXAM ACTUAL
EXAM QUESTIONS AND CORRECT
ANSWERS (ALREADY GRADED A+) |
LATEST VERSION 2024 (JUST RELEASED)
NC 302 Postlicensing Contracts & Closings Regarding Retention of Records 58A.108, a broker must provide copies of transaction documents: A) Within a day of receiving B) Within 3 days of receiving C) Within 5 days of receiving D) Within 14 days of receiving -----CORRECT ANSWER---------------B) Within 3 days of receiving A broker must provide copies of transaction documents:- To the Firm or Sole Proprietorship (BIC) with which they are affiliated- Within 3 days NC 302 Postlicensing Contracts & Closings Regarding Retention of Records 58A.108, a broker must keep copies of transaction documents for A) Service Agreements B) Professional Conduct C) Safety Procedures D) FIRPTA -----CORRECT ANSWER---------------A broker must provide copies of transaction documents:- To the Firm or Sole Proprietorship (BIC) with which they are affiliated- Within 3 days Keep records for 3 years after Closing Termination of Agency Disbursement of Trust Monies WHICHEVER OCCURS LAST Brokers and BIC are responsible for keeping records in a transaction These are CALENDAR days, not business days You don't count the day it was executed/received (if received Tuesday, have to upload by Friday) An offer is terminated anytime by
A) Counter offer B) Rejection by the offeror C) Revocation by the offeree D) Discovery of convicted rapist in the area -----CORRECT ANSWER---------------A) Counter offer NC 302 Postlicensing Contracts & Closings Regarding Retention of Records 58A.108, a broker must keep copies of transaction documents for ______ from the conclusion of a transaction. A) 1 year B) 3 years C) 4 years D) 5 years -----CORRECT ANSWER---------------B) 3 years NC 302 Postlicensing Contracts & Closings Regarding Retention of Records 58A.108, a broker must keep copies of transaction documents for A) 5 years B) personal account records C) all transaction records and trust account records D) none of the above -----CORRECT ANSWER---------------C) all transaction records and trust account records NC 302 Postlicensing Contracts & Closings Regarding Retention of Records 58A.108, a broker must keep copies of transaction documents for A) all closings for 5 years B) Start of Agency and Disbursement of Trust Monies C) Termination of Agency and Disbursement of Trust Monies D) Start of Agency and Handling of Option Fees and Earnest Money -----CORRECT ANSWER---------------C) Termination of Agency and Disbursement of Trust Monies NC 302 Postlicensing Contracts & Closings Regarding Retention of Records 58A.108, a broker must keep copies of transaction documents for A) uncanceled checks and bookkeeping systems B) non-expenditures C) non-general account ledgers
B) Mistake of "Material Fact" C) Does NOT apply to "Mistakes of Law" D) All of the above -----CORRECT ANSWER---------------D) All of the above NC 302 Postlicensing Contracts & Closings Discharge of Contracts TQ Contracts can be terminated in several ways except: A) agreement of parties to terminate B) full and complete performance C) material breach D) none of the above -----CORRECT ANSWER---------------D) none of the above NC 302 Postlicensing Contracts & Closings Discharge of Contracts TQ Contracts can be terminated in several ways except: A) impossibility of performance B) operation of law C) each party to the contract releases the other from contractual duties D) ovation -----CORRECT ANSWER---------------D) ovation NC 302 Postlicensing Contracts & Closings Discharge of Contracts TQ Contracts can be terminated by A) Novation B) Pur Autre Vie C) Proration D) Lateral Support -----CORRECT ANSWER---------------A) Novation (the substitution of a new contract in place of an old one) NC 302 Postlicensing Contracts & Closings Discharge of Contracts TQ Contracts can be terminated by A) RESPA B) Subsequent Modification C) Reservation D) Prima Facie -----CORRECT ANSWER---------------B) Subsequent modification
NC 302 Postlicensing Contracts & Closings Discharge of Contracts TQ Contracts can be terminated by A) Preemptive Right B) Non Recourse Note C) Accord & Satisfaction D) CERCLA -----CORRECT ANSWER---------------C) Accord & Satisfaction NC 302 Postlicensing Contracts & Closings Discharge of Contracts TQ Contracts can be terminated by A) Affidavit B) Non Recourse Note C) Cartway Proceeding D) Cancellation -----CORRECT ANSWER---------------D) Cancellation NC 302 Postlicensing Contracts & Closings What is the person to whom an agreement or contract is assigned? A) Assignee B) Assignor C) Assignar D) Assignment -----CORRECT ANSWER---------------A) Assignee NC 302 Postlicensing Contracts & Closings One who makes an assignment A) Assignment of Note B) Assignee C) Assignor D) Assignment -----CORRECT ANSWER---------------C) Assignor NC 302 Postlicensing Contracts & Closings The method or manner by which a right or a contract is transferred from one person to another. A) Assignment of Note B) Assignee C) Assignor D) Assignment -----CORRECT ANSWER---------------D) Assignment
A) All Co-Owners must sign the contract 1 B) Must use the full legal name of all entities C) Identify people by their individual Full Legal Names 2 D) All of the above -----CORRECT ANSWER--------------- NC 302 Postlicensing Contracts & Closings -----CORRECT ANSWER--------------- NC 302 Postlicensing Contracts & Closings -----CORRECT ANSWER--------------- NC 302 Postlicensing Contracts & Closings Names NOT to Use in the Contract A) Owner of Record B) Nicknames C) Combined Mr. & Mrs. "Smith" D) All of the above -----CORRECT ANSWER---------------D) All of the above NC 302 Postlicensing Contracts & Closings Marital Life Estates A) Spousal signatures are required on all SALES CONTRACTS B) Signatures are required even with ownership in Severalty Buyer options in the event of the non signature Contract Rescission Specific Performance -----CORRECT ANSWER--------------- NC 302 Postlicensing Contracts & Closings After a couple separates, before the divorce gets finalized, couples become Tennants in the Entireties. After divorce, couples become Tennants in Common. A) -----CORRECT ANSWER--------------- NC 302 Postlicensing Contracts & Closings pg. 184
- All Purchase contracts should be signed by -----CORRECT ANSWER---------------All owners of the property
NC 302 Postlicensing Contracts & Closings Pg. 184
- When identifying people in the contract, use their ________. The signature line should indicate whether or not people are "married" or "Husband and wife". -----CORRECT ANSWER---------------individual legal names NC 302 Postlicensing Contracts & Closings Pg. 184
- The one to buy, two to sell rule in NC means the following: -----CORRECT ANSWER- --------------Both spousal signatures to sell, one spouse may buy on their own. NC 302 Postlicensing Contracts & Closings Pg. 184 4,5. Spouses buying properties in their own name in NC usually are required to: A) Acknowledge deed of trust B) Sign a free trader agreement C) Spousal signature necessary on the OTPC (Offer to Purchase Contract) D) A & B only -----CORRECT ANSWER---------------A) Acknowledge deed of trust B) Sign a free trader agreement Lender's will require signature acknowledging Deed of Trust Legal counsel may recommend a "Free Trader Agreement" by signed NC 302 Postlicensing Contracts & Closings Pg. 184
- Electronic signatures are permitted and authorized by both a federal law dealing with interstate commerce and a state law dealing with intrastate commerce. These two laws are ____ and ____. Electronic systems as Docusign or Dotloop contain a mandated disclosure for the consumers that informs them of the extent of use and purpose of their electronic signature. -----CORRECT ANSWER---------------E-Sign Act UETA- Uniform Electronic Transaction Act FYI: Within your state only, not just NC, but whatever state you are in. ESign for interstate. NC 302 Postlicensing Contracts & Closings Pg. 184 TQ ____________are regulated and require disclosure and compliance with statutes, records and security A) Lis Perdens B) Mailbox Rule C) Electronic signatures D) Recordations -----CORRECT ANSWER---------------Electronic signatures
NC 302 Postlicensing Contracts & Closings Pg. 185 The Modification or Amendment of Contracts It does NOT prohibit any buyer or seller from _____, but they should be advised to consult an attorney. -----CORRECT ANSWER---------------changing or altering the language NC 302 Postlicensing Contracts & Closings Pg. 185 9 - 12. As an attorney state, North Carolina prohibits licensees from drafting contracts for others. This does not prohibit any of the following -----CORRECT ANSWER---------------A person altering an agreement to which they are a party Licensees own employment agreement with the firm A listing agreement on behalf of the firm A buyer broker agreement on behalf of the firm NC 302 Postlicensing Contracts & Closings Pg. 185 TQ 13. When a contract is changed it is called an ________. Changing or editing existing terms of a contract is considered an _____. -----CORRECT ANSWER---------------amendment NC 302 Postlicensing Contracts & Closings Pg. 185 TQ 14. Adding additional terms or conditions to a contact is properly done with an ________. There are a total of 13 NCAR/NCBA jointly approved standard addenda for use with residential contracts. -----CORRECT ANSWER---------------Addendum NC 302 Postlicensing Contracts & Closings Pg. 185 15 16 17 Most of the forms have accompanying Guidelines. All of the following should be adhered to A) Type or print legibly B) Fill in all blanks w N/A if necessary C) Be precise- avoid abbreviations and acronyms D) All of the above -----CORRECT ANSWER---------------D) All of the above NC 302 Postlicensing Contracts & Closings Pg. 185
18 19 20 Most of the forms have accompanying Guidelines. All of the following should be adhered to A) Parties (Seller & Buyer) should initial and date every change, addition, or deletion B) Rewrite offer if numerous changes C) Review all contract provisions with parties and recommend to get legal advice D) All of the above -----CORRECT ANSWER---------------D) All of the above When Is It Received? Email wise? TQ -----CORRECT ANSWER---------------All about email. What happens if buyer client says "Dont send the email to purchase. We have changed our minds and don't want to buy" after you just sent the offer to buy email to seller agent? As long as Seller hasn't replied, you can send another email to cancel. NC 302 Postlicensing Contracts & Closings Pg. 187 Back-Up Contract Addendum 2A1-T -----CORRECT ANSWER---------------Used when a property is under contract and a secondary buyer wants a contract in place should the original contract fall-through. NC 302 Postlicensing Contracts & Closings Pg. 187 Back - Up Contract Addendum 1 What is the purpose and use of this form? -----CORRECT ANSWER---------------Create an enforceable backup contract. No one can get between the buyer and the seller if the 1st buyer falls through. We want to be ready to go if the primary contract goes away without competition. Avoiding Multiple offer deals. Condition. It is a condition of this Back-up Contract that the Primary Contract is terminated as described below before Buyer and Seller shall be obligated to perform under the Back Up Contract NC 302 Postlicensing Contracts & Closings Pg. 187 Back - Up Contract Addendum 2 How does the primary contract get terminated? -----CORRECT ANSWER--------------- The primary buyer cannot close on the sale.
The last name of the buyer, and the settlement date. NC 302 Postlicensing Contracts & Closings Pg. 190 Working with Addenda Contingent Sale Addendum 1 What is the purpose and use of this form? -----CORRECT ANSWER---------------To put the seller on notice that buyer needs to sell their property to buy the sellers home NC 302 Postlicensing Contracts & Closings Pg. 190 Working with Addenda Contingent Sale Addendum 2 When is the buyer required to have an Offer to Purchase and Contract on their existing property? -----CORRECT ANSWER---------------Buy the settlement date. On or before the expiration of DD period. NC 302 Postlicensing Contracts & Closings Pg. 190 Working with Addenda Contingent Sale Addendum 3 Must the buyer provide a copy of the Offer to Purchase and Contract on their existing property to the seller? What if they don't provide it? -----CORRECT ANSWER--------------
- Yes. Provide the expiration of due dilligence Immediately notify the seller Deliver docs immediately within 3 days NC 302 Postlicensing Contracts & Closings Pg. 190 Working with Addenda Contingent Sale Addendum
- What happens if the buyer's existing property does not close? -----CORRECT ANSWER---------------Can terminate contract. Does the buyer loose DD Fee? yes. If doesn't close, can seller say, I'm going to move on? Yes.
- TERMINATION OF CONTRACT FOR BUYER'S PROPERTY Buyer may terminate. May terminate with notice If first contract doesn't close, buyer doesn't have to wait
NC 302 Postlicensing Contracts & Closings Pg. 190 Working with Addenda Contingent Sale Addendum
- How is the earnest money and due dilligence fee handled -----CORRECT ANSWER-- -------------Buyer looses DD if closes. EMD rule the same NC 302 Postlicensing Contracts & Closings Pg. 193 Working with Addenda New Construction Addendum 2A3-T
- When should a broker use this addendum as opposed to form 800T the The new construction offer to purchase and contract? -----CORRECT ANSWER---------------When the house is already built NC 302 Postlicensing Contracts & Closings Pg. 193 Working with Addenda New Construction Addendum 2A3-T
- When must the seller provide a Certificate of Occupancy -----CORRECT ANSWER---- -----------2. CONSTRUCTION OF HOUSE No later than settlement NC 302 Postlicensing Contracts & Closings Pg. 193 Working with Addenda New Construction Addendum 2A3-T
- Can improvements or additions to the property be made using this addendum? ----- CORRECT ANSWER---------------Minor improvements only. 2 Additional improvements 2D on form. Seller builder will pay for it. Has to make sure vendor doesn't create a lien on the property NC 302 Postlicensing Contracts & Closings Pg. 193 Working with Addenda New Construction Addendum
- Who pays for the construction of additional improvements? -----CORRECT ANSWER---------------Buyer.
PP 5B. Building deposit. Additional Monies. The Building Deposit Paid to Seller cash, bank, wire transfer no later than first banking day following the end of the DD period NC 302 Postlicensing Contracts & Closings Pg. 201 Working with Addenda Buyer Possession Before Closing Agreement
- What is the purpose and use of this form? -----CORRECT ANSWER--------------- Allows buyer to move in before closing instead of spending money on a hotel NC 302 Postlicensing Contracts & Closings Pg. 201 Working with Addenda Buyer Possession Before Closing Agreement
- Who are the two professionals that a buyer and seller may want to consult with before using this form? -----CORRECT ANSWER---------------Insurance and Attorney Professionals Seller needs to modify their ownership Insurance can say: sorry , not covered Need Renters insurance for the buyer Landlord Policy for the seller NC 302 Postlicensing Contracts & Closings Pg. 198 Working with Addenda FHA/VA Financing Addendum 4 What funds constitute "any penalty by forfeiture"? -----CORRECT ANSWER--------------
- The earnest money. Buyer still gets their EMD back. NC 302 Postlicensing Contracts & Closings Pg. 201 Working with Addenda Buyer Possession Before Closing Agreement
- What is the earliest time under which a buyer can take possession using this form? -- ---CORRECT ANSWER---------------8am the dated date. NC 302 Postlicensing Contracts & Closings Pg. 201 Working with Addenda
Buyer Possession Before Closing Agreement
- Does the buyer using this form agree to pay -----CORRECT ANSWER---------------yes. Right to occupy the house through rent NC 302 Postlicensing Contracts & Closings Pg. 201 Working with Addenda Buyer Possession Before Closing Agreement
- What additional obligations does a buyer assume when they utilize this form? ----- CORRECT ANSWER---------------Utilities, Maintenance NC 302 Postlicensing Contracts & Closings Pg. 201 Working with Addenda Buyer Possession Before Closing Agreement
- What obligations does the seller retain regarding the property even though it is occupied by the buyer -----CORRECT ANSWER---------------Risk. NC 302 Postlicensing Contracts & Closings Pg. 201 Working with Addenda Buyer Possession Before Closing Agreement
- What happens if the buyer can't or doesn't close? -----CORRECT ANSWER------------- --Go through normal eviction process NC 302 Postlicensing Contracts & Closings Pg. 211 Additional Provisions Addendum Form 2A11-T -----CORRECT ANSWER--------------- NC 302 Postlicensing Contracts & Closings Pg. 211 Working with Addenda Additional Provisions Addendum -----CORRECT ANSWER---------------Separate statue for vacation rentals NC 302 Postlicensing Contracts & Closings Pg. 211 Working with Addenda Additional Provisions Addendum -----CORRECT ANSWER---------------Time frame rent 90 days or less.
NC 302 Postlicensing Contracts & Closings Pg. 216 Working with Addenda Agreement to Amend the Contract Form 4-T Why was this form created? -----CORRECT ANSWER---------------WARNING: ALL PARTIES, INCLUDING ANY LENDER, AND SETTLEMENT AGENT, MUST BE PROVIDED A COPY OF THIS AGREEMENT Changes to the contract, NC 302 Postlicensing Contracts & Closings Pg. 216 Working with Addenda Agreement to Amend the Contract Form 4-T 2 What specific items does the Agreement to Amend the contract form allow to be altered in the original contract? -----CORRECT ANSWER---------------such as Purchase Price Earnest Money Earnest money Deposit Date Building Deposit DD Fee Due Diligence Period NC 302 Postlicensing Contracts & Closings Pg. 216 Working with Addenda Due Diligence Request & Agreement Form 310-T 1 What is the purpose of this form? -----CORRECT ANSWER---------------Parties have agreed to change due dillegence modifications, repairs, then agreement letter becomes part of the contract NC 302 Postlicensing Contracts & Closings Pg. 216 Working with Addenda Due Diligence Request & Agreement Form 310-T 2 When should this form be completed? - ----CORRECT ANSWER--------------- NC 302 Postlicensing Contracts & Closings Pg. 198 Working with Addenda Due Diligence Request & Agreement Form 310-T 1 What is the purpose of this form? -----CORRECT ANSWER---------------
Offer to Purchase and Contract IS THE ONLY CONTRACT THAT IS GOING TO BE ON THE EXAM -----CORRECT ANSWER--------------- NC 302 Postlicensing Contracts & Closings Pg. 224 Integrating the Contractual Handling of Money with Commission Rules 11 Licensees are not permitted to courier or deliver funds relating to any of the following: A) The Amendment B) An Addendum C) Inspection payments D) Non-Repair payments -----CORRECT ANSWER---------------C) Inspection payments Not permitted: Inspection Payments Repair Payments Survey Payments Settlement distribution other than to them or their firm NC 302 Postlicensing Contracts & Closings Pg. 224 Integrating the Contractual Handling of Money with Commission Rules 12 Licensees are not permitted to courier or deliver funds relating to any of the following: A) Repair payments B) Bid payments C) Greenback payments D) None of the above -----CORRECT ANSWER---------------A) Repair payments Not permitted: Inspection Payments Repair Payments Survey Payments Settlement distribution other than to them or their firm NC 302 Postlicensing Contracts & Closings Pg. 216 Due Diligence Request & Agreement Form 310-T -----CORRECT ANSWER---------------
