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NC 302 POST LICENSING CONTRACTS & CLOSINGS EXAM
2025 VERIFIED CORRECT ANSWERS
NC 302 Post licensing 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 3 years for A) bookkeeping, expenditures, and canceled checks, whichever occurs first B) transaction files, personal deposits, and general account ledgers, whichever occurs last C) closing, Termination of agency and deposits whichever occurs first D) closing, Termination of agency, disbursement of trust monies, whichever occurs last - CORRECT ANSWER✔️ D) Keep records for 3 years after Closing Termination of Agency Disbursement of Trust Monies WHICHEVER OCCURS LAST NC 302 Postlicensing Contracts & Closings Agent Guidelines w/ offers A) A listing broker or agent is required to respond in writing that an offer was submitted if the cooperating broker who submitted the offer so requests B) The listing broker or agent must respond in the affirmative unless the seller has provided written notification waiving the obligation to have the offer presented C) Agent has to present all offers all the way throughout the contract, up to closing D) All of the above - CORRECT ANSWER✔️ D) All of the above NC 302 Postlicensing Contracts & Closings Mutual Mistakes
A) May allow buyer to rescind the contract and be refunded all monies 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
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 NC 302 Postlicensing Contracts & Closings In Contract Assignments: A) Assignor is primarily liable B) Assignee remains secondarily liable C) Generally assignable unless contract prohibits D) Assignment is auditable - CORRECT ANSWER✔️ C) Generally assignable unless contract prohibits NC 302 Postlicensing Contracts & Closings What is the BEST answer?
In Contract Assignments, there are: A) Assignors & Assignees B) Trustors & Trustees C) Payors & Payees D) Mortgagor & Mortgagee - CORRECT ANSWER ✔️ A) Assignors & Assignees NC 302 Postlicensing Contracts & Closings In Contract Assignments: A) Assignor is primarily liable B) Assignor remains secondarily liable C) Assignor in contract prohibits D) Assignee remains secondarily liable - CORRECT ANSWER✔️ B) Assignor remains secondarily liable NC 302 Postlicensing Contracts & Closings In Contract Assignments: A) Assignor is primarily liable B) Assignee remains secondarily liable C) Assignor in contract prohibits D) Assignee is primarily liable - CORRECT ANSWER✔️ D) Assignee is primarily liable NC 302 Postlicensing Contracts & Closings Appropriate signatures 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
- 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 POA - CORRECT ANSWER✔️ power of attorney Consumer Transaction - CORRECT ANSWER ✔️ Used in a "Consumer Transaction" Involving a "Natural Person" Personal Household or Family Purposes As Opposed to Business Transactions Between Entities and Companies ie all rentals would be a Business Transaction Undisclosed Buyer Principals - CORRECT ANSWER✔️ Undisclosed Buyer Principals Some "corporate buyers" wish to remain anonymous Agent may sign as "Agent for Undisclosed Principal" - (with authority) Creates Additional liability issues Not permitted in Dual Agency when could a broker actually create language for a contract? - CORRECT ANSWER✔️ A listing Agreement NC 302 Postlicensing Contracts & Closings Pg. 185
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 2 A 1 - 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. NC 302 Postlicensing Contracts & Closings Pg. 187 Back - Up Contract Addendum
- How does the buyer with the backup contract know that they are now in primary position? - CORRECT ANSWER✔️ The seller told us in writing. Seller informed the backup party agent. One of the broker's responsibilities is to make sure the primary contract is terminated before the back up contract can move forward. NC 302 Postlicensing Contracts & Closings Pg. 187 Back - Up Contract Addendum 5 How is the backup buyer to handle due diligence - CORRECT
CORRECT ANSWER✔️ No, by right. But the buyer needs to see w permission, then yes. Cannot have access without permission from the 1st Buyer. 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
builder contractor has 5 days to give notice. No notice, the delay is waived. NC 302 Postlicensing Contracts & Closings Pg. 193 Working with Addenda New Construction Addendum
- Does the buyer have the right to inspect the improvements? - CORRECT ANSWER✔️ Yes. Paragraph 4 INSPECTIONS Reasonable times not interfering with the progress of construction NC 302 Postlicensing Contracts & Closings Pg. 193 Working with Addenda New Construction Addendum
- Under what circumstances does the buyer have the right to cancel the Contract? - CORRECT ANSWER ✔️ Standard Form 2 A 3 - T 5B Buyer and Builder had agreed to the additions, but built not up to par, or non build...????? NC 302 Postlicensing Contracts & Closings Pg. 193 Working with Addenda New Construction Addendum
- What is a building deposit and how is it handled? - CORRECT ANSWER✔️ No EMD. Paid to seller as additional $, transferred no later than the first banking day DD period. 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
