In Class Quiz

Question 1

The point at which supple and demand are balanced is know as

a. highest and best use
b. balance
c. conformity
d. equilibrium

Answer 1

d. equilibrium

Question 2

A trade fixture is considered

a. a fixture
b. an easement
c. personalty
d. a license

Answer 2

c. personalty

Question 3

A seller is under contract to sell a property using the standard offer to purchase and contract. The elegantly decorated master bedroom has vertical window blinds, hand painted light switches and electrical outlet covers, and draperies fashioned from fabric coordinated with the wallpaper. Which of the following items may the seller legally remove before the close of the transaction?

a. none of the items
b. the draperies and blinds
c. the hand painted items
d. the draperies

Answer 3

d. the draperies

Question 4

A person who has complete control over a parcel of real estate is said to own a

a. leasehold estate
b. fee simple estate
c. life estate
d. defeasible fee estate

Answer 4

b. fee simple estate

Question 5

Which of the following has an indefinite ownership period?

a. freehold estate
b. non freehold estate
c. estate for years
d. estate at will

Answer 5

a. freehold estate

Question 6

A decedent left a will giving a neighbor the right to use a well on the decedent’s land as long as the neighbor was alive. The neighbor’s interest in the property is properly called a(n)

a. leashold estate
b. easement in gross
c. easement appurtenant
d. life estate

Answer 6

b. easement in gross

Question 7

A brother and sister bought a commercial building and took title as joint tenants with right of survivorship. The brother died testate. The sister now owns the building

a. as a joint tenant with right of survivorship with her brother’s heirs.
b. in severalty.
c. as a tenant in common with her brother’s heirs.
d. as a life tenant with her brother’s heirs having remainder interest.

Answer 7

b. in severalty.

Question 8

A brother and sister can NOT concurrently own real estate in North Carolina as

a. remainder devisees
b. tenants by entireties
c. joint tenants
d. tenants in common

Answer 8

b. tenants by entireties

Question 9

One of two owners hold an undivided 60 percent interest and the other holds and undivided 40 percent interest. The two owners probably hold their interests as

a. cooperative owners
b. joint tenants
c. community property owners
d. tenant in common

Answer 9

d. tenant in common

Question 10

In order to reach the garage on their property, the property owner utilizes an easement appurtenant that give the right to use the neighboring property’s driveway. The neighboring property is the

a. leasehold interest
b. dominant tenement
c. servient tenement
d. licensing property

Answer 10

c. servient tenement

Question 11

When a company furnishes building materials for a house and is subsequently not paid, the company may file

a. a deficiency judgment
b. a lis pendens
c. an stoppel certificate
d. a mechanic’s lien

Answer 11

d. a mechanic’s lien

Question 12

Which of the following liens holds first priority regardless of when it was recorded?

a. mortgage lien
b. purchase money lien
c. ad valorem tax lien
d. federal income tax lien

Answer 12

c. ad valorem tax lien

Question 13

All of the following are true about a metes-and-bounds legal description EXCEPT

a. it is only used in state west of the Mississippi
b. the point of beginning must be an identifiable landmark or monument
c. it will have a series of calls in relationship to monuments
d. the final call must return to the point of beginning

Answer 13

a. it is only used in state west of the Mississippi

Question 14

Which of the following is an essential element of a valid North Carolina deed?

a. a seal
b. recordation
c. the signature of the grantee
d. words of conveyance

Answer 14

d. words of conveyance

Question 15

In order for a deed to be valid

a. the grantor must be legally competent
b. the signature of the grantor must be witnessed
c. the deed must be recorded
d. the grantee must sign the deed

Answer 15

a. the grantor must be legally competent

Question 16

All of the following are examples of police power EXCEPT

a. zoning ordinances
b. building codes
c. restrictive covenants
d. subdivision regulations

Answer 16

c. restrictive covenants

Question 17

A North Carolina broker verbally agrees to represent a prospective buyer even though the buyer declined to sign a buyer agency agreement. The broker neglected to revisit the agency issue before showing the buyer a suitable property. Therefore, while showing property, the agent has fiduciary duty to

a. the seller
b. the buyer
c. no one
d. the public

Answer 17

b. the buyer

Question 18

Which of the following statements is TRUE about types of agency?

a. a property manager usually acts as a special agent of the landlord
b. a listing agent usually acts as a general agent of the seller
c. a real estate licensee usually acts as a general agent of an affiliated firm
d. a buyer’s agent usually acts as a universal agent for the buyer

Answer 18

c. a real estate licensee usually acts as a general agent of an affiliated firm

Question 19

A contract created under duress is

a. voidable
b. enforceable
c. discharged
d. void

Answer 19

a. voidable

Question 20

The type of listing agreement that provides for the payment of a commission to the broker even though the owner makes the sale without the aid of the broker is called an

a. exclusive right to sell listing
b. open listing
c. exclusive agency listing
d. alternative two listing

Answer 20

a. exclusive right to sell listing

Question 21

The amount of earnest money deposit is determined by

a. the Real Estate Settlement Procedures Act
b. an agreement between the parties to the contract
c. the broker’s office policy on such matters
d. the listing agreement

Answer 21

b. an agreement between the parties to the contract

Question 22

A prospective buyer makes a written purchase offer through a buyer’s agent at ABC Realty. The seller accepts the offer as written. Seller communicates to a listing agent at XYZ Realty that the offer was signed. At this point in time, the

a. seller is contractually bound
b. buyer is contractually bound
c. both parties are contractually bound
d. buyer can still withdraw the offer

Answer 22

d. buyer can still withdraw the offer

Question 23

On Monday, the seller receives a written offer on his vacant lot for $52,000. On Tuesday, the seller counteroffers for a sales price of $54,500. On Friday, the seller withdraws the counteroffer and accepts the original offer of $52,000. Under these conditions,

a. there is a valid agreement because the seller accepted the buyer’s offer exactly as it was originally made.
b. there is no valid agreement because the seller’s counteroffer was rejection of the buyer’s original offer.
c. there is a valid agreement because the seller accepted before the buyer withdrew the original offer.
d. there is no valid agreement because the buyer’s original offer was not accepted within 72 hours.

Answer 23

b. there is no valid agreement because the seller’s counteroffer was rejection of the buyer’s original offer.

Question 24

A tenant’s apartment lease has expired. She and her landlord have agreed that she may remain on the premises until a sale of the building is finalized or until the tenant locates another suitable rental, whichever occurs first. The tenant will continue to pay her normal monthly rent. She and the landlord made a commitment to inform each other two weeks prior to ending this agreement. The tenancy described is

a. estate at will
b. estate sale
c. estate at sufferance
d. periodic tenancy

Answer 24

a. estate at will

Question 25

A land contract provides for the a. sale of unimproved land only b. sale of real property under an option agreement c. conveyance of legal title at a future date d. immediate transfer of reversionary rights

Answer 25

c. conveyance of legal title at a future date

Question 26

Under NC license law, which of the following people require a real estate license? a. a property manager's salaried employee who exhibits rentals b. attorney-in-fact c. a trustee in a bankruptcy proceeding or foreclosure sale d. an attorney who lists and sells real estate for others

Answer 26

d. an attorney who lists and sells real estate for others

Question 27

An unlicensed salaried assistant of a real estate provisional broker is soliciting listings for his provisional broker a. this is legal so long as the assistant is not paid any portion of the commission b. this is not legal unless the assistant and the provisional broker have permission from the BIC c. it is not legal for the unlicensed assistant to solicit listings d. this is legal so long as the provisional broker does not conduct a BPO

Answer 27

c. it is not legal for the unlicensed assistant to solicit listings

Question 28

A real estate licensee obtains their real estate license in October. When will they first need eight hours of continuing education? a. within 90 days of their first anniversary date b. when they renew their license to second time c. when they renew their license at first time d. within 120 days of license activation

Answer 28

b. when they renew their license to second time

Question 29

Agency agreements in North Carolina must include all of the following requirements EXCEPT a. a definite ending date b. the list price and automatic renewal clause c. buyers agent license number d. fair housing language

Answer 29

b. the list price and automatic renewal clause

Question 30

Which of the following statements about the Working With Real Estate Agents brochure is TRUE? a. the customer creates a fiduciary agency relationship when signing the panel b. the brochure is required in all real estate transactions c. the consumer must sign the acknowledgment panel that the agent maintains on file for 3 years d. the brochure id required in all commercial sales transactions

Answer 30

d. the brochure id required in all commercial sales transactions

Question 31

Designated agency in North Carolina is considered I. a form of Dual Agency II. mandatory if the firm offer Dual Agency a. I only b. II only c. Both I and II d. Neither I nor II

Answer 31

a. I only

Question 32

Concerning the NC Residential Property & Owner's Association Disclosure Statement, the listing broker should I. complete the form for the seller II. assure the owner discloses all material facts concerning the listed residential property a. I only b. II only c. Both I and II d. Neither I nor II

Answer 32

d. Neither I nor II

Question 33

Which of the following are TRUE concerning real estate licenses in North Carolina? I. provisional brokers must have 8 hours of continuing education prior to their first license renewal II. real estate licenses not renewed by June 30 each year are placed on inactive status a. I only b. II only c. Both I and II d. Neither I nor II

Answer 33

d. Neither I nor II

Question 34

The listing agent is aware of leaking polybutylene plumbing and has listed the home for sale in the MLS. She receives an Offer to Purchase from a buyer. The listing agent does not mention the leaking polybutylene plumbing to the buyer of their agent. The listing agent is guilty of a. negligent omission b. negligent misrepresentation c. willful omission d. willful misrepresentation

Answer 34

c. willful omission

Question 35

An agency agreement will be terminated by I. death of the principle before an offer to purchase is signed II. death of the listing agent a. I only b. II only c. Both I and II d. Neither I nor II

Answer 35

a. I only

Question 36

A North Carolina listing agent would be required to disclose to a prospective buyer which of the following material facts? a. a registered sex offender lives next door b. the current home owner has HIV/AIDS c. streets in the subdivision are privately maintained d. the house is reportedly to be haunted

Answer 36

c. streets in the subdivision are privately maintained

Question 37

Which component of a house is not part of the roof system? a. soffit b. ridgeboard c. header d. eave

Answer 37

c. header

Question 38

A Provisional Broker informs a customer that his listing client recently received a job transfer to another state and must sell immediately. This is I. acceptable as the comments may promote an offer II. acceptable if the provisional broker does not disclose specific financial information associated with his clients motivation a. I only b. II only c. Both I and II d. Neither I nor II

Answer 38

d. Neither I nor II

Question 39

How many days does a provisional broker have to deposit earnest money into the trust account? a. no later than three banking days from acceptance b. no later than five banking days following receipt of the funds c. no later than three banking days following receipt d. trick question; provisional brokers do not "deposit" funds

Answer 39

d. trick question; provisional brokers do not "deposit" funds

Question 40

In North Carolina, a licensee and buyer client must sign a written agency agreement by what point in time? I. at first substantial contact II. at the time buyer's agent will present offer to purchase on buyer's behalf III. when the buyer's agent attempts to limit the buyer's ability to work with other agents a. I only b. I and II only c. II and III only d. I and III only

Answer 40

c. II and III only

Question 41

In North Carolina, Brian Broker sold a home to Rebecca Buyer. The home was listed with Brian's company and Brian's company does not offer Designated Agency. What type of agent could Brian be? I. buyer agent II. seller subagent a. I only b. II only c. Both I and II d. Neither I nor II

Answer 41

b. II only

Question 42

According to the North Carolina Time Share Act, a. a time share in not considered real property and the buyer will receive a General Warranty Deed b. a time share developer may be fined $500 for each violation of the NC Time Share Act c. the buyer will receive a proprietary stock option lease at closing d. a time share developer must be the registered broker in charge

Answer 42

b. a time share developer may be fined $500 for each violation of the NC Time Share Act

Question 43

Ann Broker listed a residential property in Onslow County. She is aware the property will most likely be annexed by the City of Jacksonville and the property taxes will be significantly higher in the future. A buyer's agent from another real estate company is not aware of the annexation has out of state buyers interested in the property. When asked about pending changes that may affect the property, Ann Broker state that there are none. Which of the following statements are true? I. Ann is guilty of willful omission II. They buyer's agent may be held liable for not disclosing the material fact a. I only b. II only c. Both I and II d. Neither I nor II

Answer 43

b. II only

Question 44

What is the status of the provisional broker license at initial issuance? a. expired b. inactive c. active d. BIC eligible

Answer 44

b. inactive

Question 45

How many years must unsuccessful real estate transaction records be kept? a. 3 years b. 5 years c. any timeline prescribed in the Office Policy and Procedures manual d. unsuccessful or failed transaction file may be shredded to destroy confidential information

Answer 45

a. 3 years