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Superior School of Real Estate Final Exam
Questions and Answers, 100% Correct- Latest 2024
Which of the following would create legally binding acceptance of a written offer? - correct answer The seller's agent emails the buyer's agent that the seller signed the offer as written." "A broker is preparing a comparative market analysis (CMA) for a subject property with 3200 square feet. A comparable property has 2750 square feet. The estimated value of 450 additional square feet is $22,500. The broker should... - correct answer Add $22,500 to the sales price of the comparable property." "An option to purchase has been created for a one hundred acre parcel of farmland. During the one-year option period, the option he has the right to... - correct answer Execute the option to purchase on the terms in the option agreement." "A buyer is under contract to purchase a home for $370,000 and has qualified for an 80% loan- to-value mortgage loan at an annual interest rate of 45%. How much will the buyer owe for the 1% loan origination fee and 1 1/2 discount points associated with this loan package? - correct answer $7,400" "The buyer and the seller in a failed transaction cannot agree on how to disburse the earnest money deposit being held in the listing firm's trust account. The listing firm must retain the records of this transaction for 3 years after the... - correct answer Date the earnest money is disbursed." "Which of the following is an example of personal property that could typically be removed by the seller of a residential property? - correct answer A tree house constructed in a tree on the property that can be removed without damage to the tree." "Which of the following properties would be the best comparable for an appraiser to use for an appraisal of a two-story subject property with 3 bedrooms and 2 baths in a subdivision near the downtown area of a city? - correct answer 3 bedrooms, 2 baths two-story house in a nearby similar subdivision." "Which of the following is a legal property management practice under the Federal Fair Housing Act as amended in 1998? - correct answer Requiring a credit report and a criminal background check for all applicants." "How and when must a broker notify an unrepresented buyer that the broker represents the seller? - correct answer In writing, before obtaining any personal information from the buyer." "Excise tax on real property in North Carolina is... - correct answer $1per$500"
"Which of the following scenarios best illustrates first substantial contact? - correct answer Seller states that she must relocate by the end of the year." "Liens, restrictive covenants, easements, and encroachments are all examples of... - correct answer Encumbrances." "A detached workshop extends over the property line onto the neighboring lot by six inches. This legally constitutes as a (an)... - correct answer Encroachment." "A North Carolina broker is required to deliver all executed contracts to his/her clients no later than... - correct answer Three days after receipt by the broker." "A buyer who is Muslim instructs the broker to show the buyer properties that are located in neighborhoods that have a higher number of Muslim residents. If the broker complies with this client's instructions the broker will be in... - correct answer Compliance with the Civil Rights Act of 1866, but in violation of the Federal Fair Housing Act." "Which of the following statements regarding the TILA-RESPA Integrated Disclosure (TRID) requirements is true? - correct answer Within three days of receiving a loan application, the lender must provide the applicant with a loan estimate." "A house located within the city limits has a current market value of $485,000 according to a recent appraisal. The assessed value from the last county-wide tax valuation is $412,250. The tax rate is $.92 per hundred for the county and $.34 per hundred for the city. What is the total annual property tax liability on the property, rounded to the nearest dollar? - correct answer $5,194" "Which of the following situations would be considered a material fact in North Carolina? - correct answer The seller has been served with a foreclosure notice." "The fiduciary duties of an exclusive buyer's agent include... - correct answer Concealing clients confidential information." "A title insurance policy... - correct answer Protects the purchaser and/or the lender against loss due to an existing covered title defect that was undiscovered when the policy became effective." "Regulation Z on the Truth-In-Lending Act requires that lenders... - correct answer Disclose mortgage loan finance charges and interest rate to borrowers." "Which of the following statements about deeds is true? - correct answer A special warranty deed contains a promise that the grantor will convey title on the property without any encumbrances." "Under the North Carolina Residential Rental Agreements Act, - correct answer Tentantcanusewithheldpaymentofrenttopayforrequiredrepairs"
"Which of the following statements about a listing agreement is true? - correct answer It creates a fiduciary relationship between the seller and the listing firm." "A state law that requires contracts conveying interest in real property to be in writing in order to be enforceable is called the... - correct answer Statue of Frauds." "Which of the following statements about a provisional broker (PB) is true? - correct answer The PB and his/her supervising broker-in-charge are subject to disciplinary action for any actions of the PB that are in violation of Commission rules." "Under a net lease, the tenant pays for a base monthly rent plus... - correct answer Some are all of the property expenses such as maintenance, taxes, and insurance." "Which of the following statements about hybrid ownership is true? - correct answer In timeshare ownership, individuals have a limited use of a commonly owned unit." "A buyer's agent will keep 65% of her firms earn commission split. The sales price of the property is $876,000. If the listing firm is offering a 50/50 split of the 5.5% commission to the selling firm how much will the buyers agent receive? - correct answer $15,658." "A house has a finished bonus room above the garage that is only accessible through an unheated garage. The room is heated by a portable space heater and cooled by a window air conditioner unit. Which of the following statements is true? - correct answer The bonus room does not meet the criteria for living area, because it is not adequately heated." "A dual agent may disclose which of the following information to one of the agent's principals without the permission of the other client? - correct answer The fact that the property in question is being re-zoned" "Which of the following statements regarding adjustable rate mortgage loans is TRUE? - correct answer The interest rate may be adjusted based on a published index." "In North Carolina, which of the following statements regarding tenant security deposits is TRUE? - correct answer The Broker or landlord must account for the tentant security deposit in writing within 30 days.." "An exclusive buyer's agency agreement with a firm will be automatically terminated if the - correct answer buyer and the firm agree to stop working together." "A real estate broker may legally and ethically solicit business from property owners on the Do- Not-Call Registry by - correct answer Calling a FSBO" "Which of the following statements BEST describes the relationship between the primary and secondary
mortgage markets? - correct answer The primary mortgage market is made up of lenders that originate mortgage loans, and the secondary mortgage market provides.. originating loans." "After hours of negotiating, a buyer and a seller reach an oral agreement on the terms for the purchase of the seller's home. The buyer submits a written offer with the terms of the oral agreement. Before the seller has a chance to sign the written offer, the seller dies of a heart attack. Which of the following statements is TRUE? - correct answer The buyer's offer is terminated, because the seller did not sign the offer." "Which of the following statements in a broker's advertisement for real property would be compliant with Regulation Z requirements? - correct answer "Seller will pay $1000 toward a buyer's closing costs"" "In a North Carolina firm that practices dual agency, but not designated agency, a broker may disclose confidential information about a seller-client to - correct answer no one" "A buyer agent must disclose to the seller or the seller's agent that the broker represents the buyer - correct answer at the buyer agent's initial contact with the seller or seller's agent." "A buyer has contracted to purchase a home for $275,000. The buyer paid a $4,000 earnest money deposit and the sale will close on March 30. The buyer has already received loan approval for an 80% loan-to-value conventional loan. The lender is charging the borrower a 1% loan origination fee and ½ discount point. The lender is requiring the borrower to deposit 7 months of real property taxes and 2 months of homeowner insurance premium into an escrow account at settlement. The homeowner insurance premium for the first year is $864 and is to be paid at settlement. Real property taxes for the year total $3635 and have not been paid for the current year. For prorations, use a 30-day month/360-day year and assume the seller owns the day of settlement. Additional closing expenses for the buyer total $1500. What is the net amount that the buyer will owe at settlement, rounded to the nearest dollar? - correct answer 59,837" "A commercial lot in the city is located in the middle of an area zoned for office use only. City zoning requirements limit construction to one story in height and dictate a minimum number of parking spaces based on the square footage of an office building. The property owner wishes to build an office building on the lot. Due to the irregular shape of the lot and the presence of a city utility easement across the owner's property, less than half of the required parking spaces will fit on the property. The property owner realizes that the required parking spaces could be created by constructing offices over a one-story parking garage. The property owner should petition the city for a - correct answer variance" "A listing agreement generally includes - correct answer an automatic termination date." "Which of the following statements concerning broker compensation in North Carolina is TRUE?
- correct answer Compensation to a broker from a settlement service provider in the transaction is probably in violation of RESPA."
"The North Carolina Real Estate Commission may discipline a broker for - correct answer drafting a loan contingency provision into a residential sales contract. or using a sales contract form furnished by a client rather than an approved standardized form" "A real estate firm lists a residential property for $647,500. The seller agrees to pay a 6% listing commission. An agent with a different firm sells the property for a contract price of $639,000. The listing firm will pay the 2.6% commission split offered in the MLS to the selling firm. How much commission will the listing firm retain? - correct answer 21,726" "In the Market Data Approach to value, the principal factors used to select comparable properties are - correct answer date of sale, location, physical features, and terms and conditions of sale." "A necessary element of an enforceable real estate sales contract is - correct answer the recordation of the agreement." "A listing agent receives two written offers for the same property within a few hours of each other. Both offers propose a purchase price below the listed asking price, but they vary in financing and other terms. The listing agent may - correct answer present both offers to the seller and coach the seller on possible responses." "A buyer's agent hand-delivers a signed offer to the listing agent with a different real estate firm. When the listing agent presents the offer to the seller in person, the seller strikes through the proposed purchase price and enters a higher number, initials the change, signs the offer, and hands the offer back to the listing agent. The listing agent delivers the signed offer to the buyer agent's firm. The buyer's agent scans and emails the document to the buyer, pointing out the price change. The buyer initials the change and emails the document back to the buyer's agent. The buyer's agent calls to inform the listing agent that the buyer has initialed the price change. The listing agent notifies the seller later that day of the buyer's acceptance. A binding contract was created when - correct answer the buyer's agent told the listing agent that the buyer had initialed the change" "Under North Carolina Real Estate Commission rules, all written agency agreements - correct answer may be oral at first but must be reduced to writing by the time either party wants to present an offer to purchase any property." "At the settlement meeting, a North Carolina buyer's agent in a residential sales transaction is expected to verify that the settlement statement entries - correct answer are completely accurate." "Buyer and Seller have entered into a residential sales contract using the standard 2-T Offer to Purchase and Contract form jointly approved by the North Carolina Association of REALTORS® and the North Carolina Bar Association. Buyer wishes to terminate the contract during the Due Diligence Period. Seller has not breached the contract and the property has not been damaged. Per the contract, which of the following monies, if any, should be refunded to Buyer? - correct answer The Earnest Money only"
"Which of the following statements regarding designated agency in North Carolina is TRUE? - correct answer A non-provisional broker may be the designated agent for the seller-client and a provisional broker in the same firm may be the designated agent for the buyer- client." "In North Carolina, an oral buyer agency agreement - correct answer requires the consumer to sign the Working with Real Estate Agents brochure panel before entering into any agreement." "The city has recently improved a residential subdivision by installing sidewalks across the front of the neighborhood lots. To recover the expense of the sidewalk installation, the city will collect the money from the improved lot owners by imposing a(n) - correct answer special assessment." "When establishing rental rates for an income-producing property, a broker engaging in property management should give the MOST consideration to which of the following factors? - correct answer A market analysis of neighboring, competitive properties" "Which of the following statements about VA mortgage loans is TRUE? - correct answer Federal law prevents a VA loan from exceeding the appraised value of a home." "A sales contract is contingent upon the buyer obtaining financing at terms stated in the contract within 30 days of contract formation. If the buyer is unable to secure such financing by the deadline , - correct answer the buyer may terminate the contract and have the entire earnest money deposit returned to the buyer." "A seller agrees to all of the terms in a buyer's offer except the proposed closing date. The seller changes the closing date, initials the change, and signs the offer. The listing agent promptly notifies the buyer's agent of the seller's actions. Given these facts, which of the following statements is TRUE? - correct answer The buyer's offer has been rejected, and the seller has made a counteroffer." "A sales contract for real property may be terminated based on the - correct answer destruction of the property." "Three friends (A, B, and C) own a property as joint tenants. Each has a spouse and children. Friend A dies and wills his interest in the property to his children. Which of the following BEST describes the ownership of the property after Friend A's estate has been settled? - correct answer Friends B and C own the property as joint tenants." "XYZ Realty's broker-in-charge is making a listing presentation to a property owner. The broker- in-charge explains that XYZ is a "full-service" listing firm, details all of the services that will be provided, and quotes a 6% brokerage commission for such services. The property owner asks the broker-in-charge whether the company will reduce the brokerage commission to 4.5% for the same level of service. The broker-in-charge knows that most real estate firms in the area charge 6%. Which of the following is a LEGAL response by the broker-in- charge to the owner's inquiry? - correct answer "Our commission rate is comparable to the other full-service real estate firms in this area.""
"If the seller has prepaid the real property tax bill for the entire calendar year prior to settlement, which of the following statements regarding the settlement statement entries is TRUE? - correct answer The buyer's portion of the tax bill will appear as a buyer debit and a seller credit." "The annual real property tax liability for a residential property is $4302 and has been paid by the seller in advance of closing. Using the 30-day month/360-day year method, what will be the tax proration entry on the settlement statement, rounded to the nearest dollar, for a closing on October 26 if the buyer owns the day of closing? - correct answer $777 debit to buyer and $777 credit to seller" "Which of the following statements BEST defines a real estate appraisal? - correct answer An estimate of the value of a specific property by a licensed appraiser that is reliable for a period of 6 months from the date of appraisal" "Which of the following advertisements placed by a broker with Homes Realty complies with Commission rules? - correct answer Cute 1200 sq. ft. house for sale in Pleasant Valley subdivision. 2 bedrooms, 1½ baths, assumable loan. Call Homes Realty at 555-1234." "A metes and bounds property description - correct answer uses monuments to identify changes in direction." "A North Carolina buyer's agent has found 3 properties that meet the client's detailed list of required features. Although all three properties are listed for very similar prices in the same neighborhood, a $2000 selling bonus is offered to the selling agent on one property. Must the buyer's agent disclose the bonus offer to his/her buyer- client before writing an offer on that property? - correct answer Yes, because brokers must disclose to their principals all compensation they may receive from others." "How is the loan-to-value ratio calculated? - correct answer Mortgage Amount ÷ Sales Price = Loan-to-Value" "A property owner enters into a contract to sell a residential rental property. The monthly prepaid rent of $950 will be prorated at settlement. Settlement is scheduled for October 26. If the seller owns the day of settlement using a 30-day month/360-day year, how would the prorated rent appear on the settlement statement? - correct answer $126.67 debit to buyer and $126.67 credit to seller" "An owner tells the listing broker that the 20-year-old roof has leaked in a few places recently. The owner has painted over the interior water stains but has not repaired the roof. The listing agent writes this information in her notes but does not include the information in the MLS listing data. No roof disclosures are made on the disclosure form. When the listing agent shows the property to a prospective buyer who asks if there are any problems with the house, the listing agent says there are no known problems. In this situation, the listing agent is guilty of - correct answer willful misrepresentation."
"A buyer's agent owes which of the following duties to the buyer? - correct answer Performing a comparative market analysis before an offer"
