Bad Ash Practice October 2024 Flashcards

Bad Ash Practice (October 2024) Flashcards What is the name of the document that entitles a veteran to VA loan financing?Certificate of Eligibility Which type of legal description would you MOST likely see used for a property in a subdivision?Lot and Block According to the common law of agency, a real estate licensee acting as a subagent of an employing broker

MUST...

Be loyal to the interests of the broker's principle What is a loan where payments are made in installments and the entire principle is paid off gradually throughout the loan period BEST known as?Amortized in North Carolina, which of the following is correct regarding representation of a buyer?A buyer agency agreement must be in writing prior to submitting an offer At the beginning of the week, a buyer signed an offer to purchase a property and gave the buyer's agent an earnest money deposit. At the end of the week, the seller still had not reviewed the offer, and the buyer decided to withdraw the offer and use the earnest money on another property.Which of these statements is correct?The offer may be withdrawn without penalty to the buyer A prospective buyer made an offer to purchase a house at less than the listing price. The seller has the listing licensee present a counteroffer, which the buyer did not accept. This prompts the seller to reconsider the first offer, which the seller accepted, signed, and had delivered to the prospective buyer. Which is a CORRECT statement?The prospective buyer was released from the original offer's terms, once the seller made the counteroffer Which statement is correct regarding property management in NC?Employees of property management firms are not required to hold a real estate license in order to show properies and fill out rental agreements Which of these statements has the GREATEST applicability when determining a property's value when using the income approach to valuation?Effective gross income minus operating expeses equal net operating income(NOI) A university receives a gift of real property from an individual who reserves a life estate for a family member's use. The university would BEST be described as the...Remainderman A house located within the city limits has a current market value of $495,000. The assessed value is 85% of the market value. The county tax rate is $.75 per hundred and the city tax rate is $.40 per hundred. What is the total annual tax liability on the property rounded to the nearest whole dollar?

$4,838

The Real Estate Settlements Procedures Act (RESPA) specifically prohibits which of these practices in the course

of financing real estate transactions governed by RESPA?Kickbacks

• calendar daysUnder North Carolina Commission Rules a broker must

deliver copies of all offers, contracts and transactional documents to their clients or customers and the firm or sole proprietorship with which they are affiliated, immediately

but no later than:

Which of the following is correct regarding the Closing Disclosure required by the Real Estate Settlement and Procedures Act?The broker is responsible for reviewing the closing disclosure for accuracy and completeness.A borrower obtained a 30-year fixed rate loan in the amount of 273,400. If the interest rate on the loan is 4.75%, what is the amount of monthly interest the borrower will pay with the first payment?

$1,082.20

What is the status of a license for a broker who did not complete either their continuing education or post licensing requirements in accordance with the North Carolina Statutes and Rules?* inactive Which statement is true about the Federal National Mortgage Association(FNMA)?It purchases mortgages in the secondary mortgage market A market analysis conducted by a property manager for the owner would MOST likely contain what information?List of services and fees that the property manager will charge the owner A licensee knows of a real estate investor looking to dispose of one of his rental properties. The licensee brings a potential buyer over to the property, and the buyer expresses an interest in purchasing the rental property.Neither the buyer nor the seller has signed any type of real estate employment agreement; however, the agent is involved in the negotiations. Under the common law of agency, which of these statements is true?The licensee may be creating an implied agency relationship with both the investor and the buyer Which of the following statements is correct about the North Carolina Residential Property Disclosure Statement?A licensee is responsible for disclosing all material defects of which they knew or should have known regardless of how the seller completes the form.Which of the following is a correct statement regarding agency in North Carolina?A licensee may practice oral buyer agency but must have a written buyer brokerage agreement with the buyer prior to presenting an offer.In the practice of lending and real estate , what does the term "novation" refer to?The intent to discharge an original contract and replace it with a new one What is the best way for a real estate agent to handle the area occupied by the stairs when determining the square footage of a two-story house?Include the area occupied by the stairway as part of the area for both the first floor and second floor.Which of the following is correct regarding property management in North Carolina?According to the NC Tenant Security Deposit Act, the maximum amount of tenant security deposit is the equivalent of one and one-half month's rent if the tenancy is from month to month.To be enforceable in court, a contract MUST include which of these elements?Competent Parties

InNorth Carolinawhen a joint tenant dies, their interest in real property passes to which of the following?Their heirs Which of the following is true about townhouses in NC?The HOA owns the common areas in severalty.When a borrower is required to pay a loan origination fee, the fee is intended to compensate the lender for expenses that are BEST described as...Administrative costs involved in processing the loan Which of the following is a correct statement regarding the TRID Closing Disclosures?If the buyer and seller are closing on a Monday, which is not a federal holiday, then the borrower must be in receipt of the Closing Disclosure by Thursday of the previous week.A buyer and seller enter into an agreement that gives the buyer the option to purchase the property within a specified period of time. The CORRECT statement about this agreement is...The buyer is not obligated to purchase the property A broker listed a property for a seller. The seller instructed the broker that they did not want the property advertised in the local paper or media. Given this, which is true?The seller can place any kind of restrictions to which the seller and broker agree A seller is working with a licensee to sell a property with irregular boundary lines. The licensee suspects that the neighbor's garage may extend into the seller's property and that the fence along the back of the property may have been set just outside of the seller's lot. Which statement BEST describes the licensee's obligation regarding these suspicions?Tell the seller that there may be some survey issues that should be researched An agent who establishes a fiduciary duty to a buyer client through a properly created agency relationship must always Work to protect and promote the interests of the client A property manager must consider the BEST way to manage risk. Which of these is a best practice for managing risk?Take out an insurance policy with a very small deductible In North Carolina, a broker-in-charge must: provide active and direct supervision for provisional brokers Of these descriptions, which BEST defines an executory contract?A contract with unfulfilled terms that the parties are working to complete Under the terms of a typical gross lease, the tenant pays a fixed rate PLUS...Nothing. The owner pays all other property related expenses Agent A was recently licensed as a provisional broker, and he began working at XYZ Realty. Agent A promptly enrolled in his first 30-hour post licensing course. As a condition of renewing their real estate license on active status, Agent A must satisfy the North Carolina Real Estate Commission's continuing education requirements no later than the second renewal of his license A licensee has a listing in a condominium complex near a casino that will hire a lot of legal immigrants at low wages.To get more listings, and prospective buyers for properties