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SUPERIOR NC REAL ESTATE EXAM | ALL QUESTIONS AND
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Which of the following entities sets the minimum requirements for development that occurs near waterways in North Carolina? --------- CORRECT ANSWER-----------------The North Carolina Coastal Resources Commission The state riparian buffer zone program has set in place minimum standards regarding waterway development. A landowner must apply for authorization or a variance to utilize areas within 50 feet of a waterway. Which of the following statements is true regarding property in North Carolina? ---------CORRECT ANSWER-----------------Devise refers to both real and personal property transfers. Previously, the term devise referred to a real property transfer, while bequest referred to a personal property transfer (and these terms are still hold these definitions in the national licensing exam). Today, the term devise applies to both real and personal property transfers in North Carolina. In North Carolina, statutes say that when a joint tenant dies, ______. --------
- CORRECT ANSWER-----------------The decedent's estate passes onto the decedent's heirs North Carolina statutes state that when a joint tenant dies, the decedent's estate doesn't pass onto the surviving joint tenant unless precise wording is used in the deed. Instead, it goes to the decedent's heirs (the same as it would in a tenancy in common). Because North Carolina doesn't favor the right of survivorship for joint tenancy, it's not automatic like it is in other states.
North Carolina broker-in-charge Edison was getting ready to disburse trust funds for a transaction that was set to close. During what time frame may Edison disburse the funds? ---------CORRECT ANSWER-----------------No more than 10 days before the settlement date North Carolina statute requires that the broker-in-charge who's responsible for a trust account disburse the appropriate trust funds and no more than 10 days before the settlement date. Which of the following statements is TRUE about the North Carolina Real Estate Commission's power to impose discipline on licensees who violate license law? ---------CORRECT ANSWER-----------------The commission has the option to impose reasonable conditions, restrictions, and limitations upon a licensee or on an application for licensure. In North Carolina, which of the following individuals would be required to include their license status in their advertising? ---------CORRECT ANSWER-----------------Sophie, an out-of-state licensee who works as a nonresidential commercial broker Brokers who are licensed as a limited nonresident commercial broker who don't live in the state must also identify their license type within their advertising, in addition to following all the other rules. Under the terms of the North Carolina Vacation Rental Act, the buyer or buyer's agent must notify each tenant in writing of the property transfer, the buyer's name and address, and the date the buyer's interest was recorded no later than _______ days after closing. ---------CORRECT ANSWER------- ---------- 20
period must be put in writing and signed by the parties as soon as the agreement is formed. A tenant is interested in renting Gina's property as a vacation rental for 30 days. Does she need to get an agreement in writing? ---------CORRECT ANSWER-----------------Yes, a written vacation rental agreement must be signed by all parties according to the North Carolina Vacation Rental Act. Violators of the North Carolina Telephone Solicitations Act can face fines of up to how much? ---------CORRECT ANSWER-----------------$500 for the first violation Which of the following duties does a North Carolina licensee owe to a tenant with a rental agreement? ---------CORRECT ANSWER----------------- Comply with fair housing laws and responsibilities related to managing the property Which of the following is a TRUE statement about North Carolina's residential square footage guidelines? ---------CORRECT ANSWER----------- ------Residential living area is calculated using exterior measurements. For condos, townhomes, and basements, adjusted interior measurements are necessary. Based on the North Carolina Real Estate Commission's Residential Square Footage Guidelines, which of the following statements about "living area" is TRUE? ---------CORRECT ANSWER-----------------The ceiling height must be at least seven feet, unless there are sloped ceilings.
"living area" square footage only includes, in part, spaces heated with a permanently installed heating system, areas with at least a seven- foot ceiling, and areas that are directly accessible from other heated living spaces. Who is responsible for verifying the accuracy of a North Carolina settlement statement that's been prepared by an attorney? ---------CORRECT ANSWER-----------------The broker In North Carolina, what act regulates underground storage tanks? --------- CORRECT ANSWER-----------------NC Leaking Petroleum Underground and Storage Tank Cleanup Act Who is responsible for verifying the accuracy of a North Carolina settlement statement that's been prepared by an attorney? ---------CORRECT ANSWER-----------------The broker A broker may adopt a settlement statement that was prepared by an attorney or lawful settlement agent for this purpose, but the broker must verify its accuracy and notify all parties to the closing of any errors within the statement. North Carolina BIC Bernie wants to get as much exposure as possible for his firm's listings, so he prefers to cooperate with other firms. Which of the following statements about cooperating firms and co-brokerage is true in North Carolina? ---------CORRECT ANSWER-----------------Bernie must make sure his listing agreements detail commission split specifics. Co-brokerage is legal in NC. Any commission split details must be included in the listing agreement. Brokers working with buyer's may serve as buyer's agents or as subagents for the seller.
Licensees must complete their continuing education annually, but course providers are prohibited from offering CE courses between the dates of ______. ---------CORRECT ANSWER-----------------June 11 and June 30 A minimum of ______ commission members must be licensed real estate brokers in North Carolina. ---------CORRECT ANSWER----------------- 3 NCREC must include at least three members who are licensed real estate brokers, and at least two members who not involved directly or indirectly in the real estate or real estate appraisal business. The North Carolina Time Share Act defines a(n) ______ as the document or set of documents that create or govern the time share plan's operation. - --------CORRECT ANSWER-----------------Time share instrument The document or set of documents (such as a contract, installment contract, lease, or deed) is known as the time share instrument. North Carolina broker Olivia holds an inactive license. She files a request for license activation with the commission on an approved form. At what point will Olivia's license be considered active? ---------CORRECT ANSWER-----------------Once the form has been mailed or delivered to the commission Olivia's broker license is considered active once the license activation form has been mailed to or delivered to the commission. The commission will send a written acknowledgement of this activation to the broker and BIC. If the broker or BIC hasn't received the acknowledgement within 30 days, the broker must immediately terminate all brokerage activities.
Which one of the following individuals is exempt from needing a North Carolina real estate license? ---------CORRECT ANSWER----------------- Twila is an attorney who sells her client's property as part of the settlement she's handling. An independent escrow agent must deposit and maintain the purchaser's payments in an insured trust or escrow account in a federally insured depository institution or a North Carolina trust institution. As defined in the North Carolina Time Share Act, an independent escrow agent is _______ in North Carolina. ---------CORRECT ANSWER-----------------An attorney or financial institution Mercy is a time share project developer's general partner. Before a time share registrar has been designated for the project, Mercy intentionally allows time shares to be sold to purchasers. Which of the following is true? ---------CORRECT ANSWER-----------------Mercy is guilty of a Class I felony. The time share project developer's general partner, corporate officer, joint venture, or sole proprietor is guilty of a Class I felony if that person intentionally allows time shares to be offered for sale or sold to purchasers before a time share registrar has been designated. North Carolina broker Bertrand was helping his client Ernesto with purchasing a time share. How long after Ernesto gave Bertrand his earnest money check must the check be deposited? ---------CORRECT ANSWER--- --------------Immediately What is the statutory period for adverse possession in North Carolina? ------ ---CORRECT ANSWER-----------------20 years
In North Carolina, what type of lien holds the highest priority level? --------- CORRECT ANSWER-----------------Property tax lien When reporting a sales or lease price, North Carolina law says you can report it as a single figure or as _______. ---------CORRECT ANSWER------- ----------A probable range North Carolina residents Pam and Leo died intestate. How will the state determine who inherits their estate? ---------CORRECT ANSWER-------------- ---State laws regarding intestate succession Intestate means without a will. In North Carolina, the laws regarding intestate succession will apply. In which of the following cases can joint tenants have unequal interests in North Carolina? ---------CORRECT ANSWER-----------------Anytime, provided it's clearly stated in the title. As you're completing the North Carolina Offer to Purchase and Contract with your buyer client, you come across the Seller Representations provisions. Which of the following statements about these representations is false? ---------CORRECT ANSWER-----------------Seller representations are guarantees about the property. - false true: Seller representations are statements made to the best of the seller's knowledge. Seller representations are statements of current facts the buyer can reasonably rely on when deciding whether or not to enter into the contract.
Seller representations are statements that the seller believes to be true as of the time they were made. Seller representations are NOT guarantees; they're statements of current facts the seller believes to be true about the property at the time the seller made them, so the buyer can reasonably rely on them. Seller representations are NOT guarantees; they're statements of current facts the seller believes to be true about the property at the time the seller made them, so the buyer can reasonably rely on them. ---------CORRECT ANSWER-----------------The buyer must pay for it, because he's responsible for paying to repair any property damage (with some exceptions) that occurs during a property investigation, whether it's caused by the buyer or the buyer's contractor. Which of the following closing activities occurs on the day of closing in North Carolina? ---------CORRECT ANSWER-----------------Funds are transferred. Which of the following is an example of an advantage buyers gain from engaging in an exclusive agency agreement, rather than an exclusive right to represent agreement, in North Carolina? ---------CORRECT ANSWER---- -------------Buyers can reserve the right to find a property themselves and forego paying the agent's commission. As a North Carolina licensee, which of the following best describes your duty of honesty to all parties? ---------CORRECT ANSWER----------------- Using your professionalism to uncover a problem with the boundaries that determine the size of your client's property
North Carolina broker-in-charge Caleb has let his broker's license expire. What does that mean for his BIC status? ---------CORRECT ANSWER------- ----------His BIC-eligible status terminates, and he'll need to start the process of gaining eligibility over again. If the broker's BIC-eligible status does terminate for any reason, like a failure to renew, the broker will need to take the 12-hour broker-in-charge course and apply for eligible status again, just as if it were the first time. When escrow money is deposited into a trust account to purchase a North Carolina time share, how long does the purchaser have to exercise a cancellation option? ---------CORRECT ANSWER-----------------The purchaser can cancel the transaction for five days after deposit. Before becoming a broker-in-charge, a North Carolina broker must first apply for ______ with the NCREC. ---------CORRECT ANSWER--------------- --Eligibility An actively licensed North Carolina broker must meet certain qualifications and apply for BIC-eligible status with the NCREC. No special certifications or licensure is required. North Carolina buyer Max wanted to pay the due diligence fee and initial earnest money deposit by personal check. Which of the following statements is correct in this situation? ---------CORRECT ANSWER----------- ------Both fees may be paid by personal check, but each must be paid separately in checks made out to different people. Whose responsibility is it to make sure that a preliminary plat approval exists before listing a property? ---------CORRECT ANSWER----------------- The broker
Lauren has a one-year lease with Cameron, who owns the cottage that she lives in. What is this an example of? ---------CORRECT ANSWER------------- ----Privity of estate Privity of estate is when two or more parties hold an interest in the same real property A Winston-Salem broker and his client fulfill the listing agreement, and the agency relationship is terminated. At what point did the agent's fiduciary duty of confidentiality to this client terminate? ---------CORRECT ANSWER- ----------------When the listing agreement terminated The duty of confidentiality expires when the listing agreement expires. Buyer Melinda's new townhome is set to close escrow a week from today. She just received her final, recorded, plat but was extremely disappointed to see that they moved the green space which was supposed to be behind her unit to another part of the subdivision. How long does she have to legally terminate her agreement? ---------CORRECT ANSWER----------------- In 15 days. As a North Carolina licensee, which of the following best describes your duty of honesty to all parties? ---------CORRECT ANSWER----------------- Using your professionalism to uncover a problem with the boundaries that determine the size of your client's property The North Carolina Residential Rental Agreements Act states that ______. ---------CORRECT ANSWER-----------------The tenant must property dispose of all waste and garbage in a safe and clean manner Under the North Carolina Residential Rental Agreements Act, both landlords and tenants have certain duties. Among them, landlords must
Which of the following is a type of joint tenancy that's only available to married buyers in North Carolina? ---------CORRECT ANSWER----------------
- Tenancy by the entirety Tenancy by the entirety is the default ownership for married buyers in North Carolina. Which of the following statements is true about pocket cards in North Carolina? ---------CORRECT ANSWER-----------------Licensees must be able to produce a pocket card at any time as proof of licensure. North Carolina brokers must be able to produce a pocket card (in paper or digital form) at any time as proof of licensure. Pocket cards don't indicate if a license is active or inactive. The commission issues pocket cards annually to each broker. If a North Carolina licensee's license expires, can she still collect compensation? ---------CORRECT ANSWER-----------------Yes, as long as her license was active during the entire time she provided brokerage services. The North Carolina Response to Buyer's Offer Form permits the seller to _______. ---------CORRECT ANSWER-----------------Recommend changes to the buyer's offer Without nullifying the offer that's on the table, the seller may make recommendations to make the offer worthy of being accepted.
Which agency in North Carolina enforces fair housing law? --------- CORRECT ANSWER-----------------NCHRC A North Carolina-based complaint that is filed with HUD will be referred to the North Carolina Human Relations Council (NCHRC) for investigation and resolution because the NCHRC is considered to be a "substantially equivalent" agency to the Office of Fair Housing and Equal Opportunity. Which of the following best describes an upset bid in North Carolina? ------- --CORRECT ANSWER-----------------A bid that holds a foreclosure sale open for another 10 days On Friday, North Carolina resident Eli made an offer on Olivia's property and gave her a deadline of 11:59 p.m. on the following Tuesday to accept it. On Sunday, while waiting for Olivia's response, Eli happened by an open house down the street from him and immediately fell in love with it. He decided to revoke his offer on Olivia's property and make an offer on this new property instead. Which of the following is true of this situation? --------- CORRECT ANSWER-----------------He can revoke his offer on Olivia's property any time before he is notified that she accepted the offer in writing. The covenant ______ offers the grantor's promise to defend the title against the lawful claims of others. ---------CORRECT ANSWER--------------- --Of warranty forever Which of these acronyms stands for the name of North Carolina's laws that are designed to protect the state's coastal zones? ---------CORRECT ANSWER-----------------CAMA
A North Carolina broker told his buyer client Jo that her due diligence check to the seller will be cashed on the effective date. What is the effective date? ---------CORRECT ANSWER-----------------The date the seller's written acceptance of Jo's offer was communicated to Jo The effective date is the date that the last party to the sales contract signed or initialed the offer and that information was communicated to the party who made that offer. This is when the contract becomes legally binding upon both parties. When using North Carolina Offer to Purchase and Contract, Standard Form 2 - T, what has occurred after the last party to the contract has signed or initialed the offer or the final counter-offer and that information has been communicated to the party who made the offer or final counter-offer? --------
- CORRECT ANSWER-----------------The effective date has been reached. The effective date occurs when the contract becomes legally binding upon both partieS Wilmington resident Angelina has just signed a lease with landlord Jerry. Neither her pet deposit nor her security deposit is listed as nonrefundable. Which of the following is true of this situation? ---------CORRECT ANSWER-----------------Since neither deposit is listed as nonrefundable, then it's considered refundable. Under North Carolina law, if any fees or deposits are nonrefundable, the landlord must state that in writing. If a fee or deposit isn't specifically designated as nonrefundable, it must be refundable. In North Carolina, statutes say that when a joint tenant dies, ______. --------
- CORRECT ANSWER-----------------The decedent's estate passes onto the decedent's heirs
Which of these federal exemptions to federal fair housing law is NOT included in the North Carolina state fair housing law exemptions? --------- CORRECT ANSWER-----------------Exemption of owners in both the sale and lease of property being sold without a broker, and there is no intent expressed, either published or orally to do so. federal fair housing exempts property owners in the sale and lease of property, while state fair housing law doesn't allow this exemption for the sale of property, only leasing. An unlicensed, salaried employee of a North Carolina real estate broker may NOT ______. ---------CORRECT ANSWER-----------------Solicit listings on behalf of, at the direction of, and under the supervision of a licensee North Carolina broker Andrew signed an agency agreement with seller Chloe on January 1. The sale transaction closed on March 8, and the last of the funds that Andrew's brokerage was handling were distributed on March 31. Andrew got all of the transaction documents to her broker-in- charge within the required timeframes. When does the period begin during which all of the transaction records need to be retained? ---------CORRECT ANSWER-----------------March 31 North Carolina transaction records must be kept for a minimum of three years. The retention period begins either after all transaction funds have been disbursed, or the conclusion of the transaction, whichever is later. All the transaction funds were disbursed for Andrew's transaction on March 31, so that begins the record retention period. The cost of recording the deed would appear as a ______ on the closing statement? A. debit to the buyer
