Modern Real Estate Practice in NC 10th edition Quizzes Flashcards

Modern Real Estate Practice in NC 10th edition Quizzes Flashcards The NCREC has the power toA. regulate the brokerage activities of licenseesB. determine the maximum commission a broker may charge on any one transactionC.fine licensees that do not comply with licensing law/and or Commission rulesD. interpret the legality of a real estate contract between consumers

• regulate the brokerage activities of licensees

Which of the following should be discoverable in a search of public records?A. EncroachmentsB. Rights of any party in possessionC. Inaccurate surveysD. Easements

• Easements

All of the following would affect supply EXCEPTA.populationB. construction costsC. government controlsD.the labor force

• population

The North Carolina Association of REALTORS Residential Rental Contract includes all of the following provisions EXCEPTA. late payment feesB. handling of tenant security depositsC. tenant's right to have petsD. Tenant's breach of contract

• tenant's right to have pets

Which of the following transactions is exempt from the Mineral and Oil and Gas Rights Mandatory Disclosure Statement?A. Residential sales of one to four dwellingsB.New constructionC. A lease with an option where the tenant intends to occupyD. Vacant Land

• Vacant Land

In auction sales,A. brokers must provide the Working with Real Estate Agents brochure to buyers when brokers represent sellersB. licensees representing buyers do not have to review the Working With Real Estate Agents brochure with their buyersC. a written listing agreement between the seller and a broker is required from the outset of the relationshipD. licensees representing buyers in auction sales must disclose their buyer agency status in writing to the seller at the time they bid

• a written listing agreement between the seller and a

broker is required from the outset of the relationship The purpose of a building permit is toprovide evidence of compliance with municipal building codes Which of the following is NOT an economic characteristic of real estate?A. IndestructibilityB. ScarcityC. Permanence of improvementD. Location

• Indestructibility

A trespasser built a log cabin in a remote area of a national park and occupied the structure for more than 25 years.That person will never be able to claim the property under adverse possession statutes, because theA. possession was not notoriousB. possession was not openC. property

was not privately ownedD. property was not properly fenced.

• property was not privately owned

A fee simple estate has all of the following characteristics EXCEPT that it isA. of indefinite durationB. Free of encumbrancesC. Transferrable by deed or by willD.Transferrable with or without valuable consideration

• Free of encumbrances

The section due east of Section 13 is:A. Section 12B.

Section 14C. Section 18D. Section 24

• Section 18

Which of the following statements is TRUE about subdivisions in NC?A. There must be at least 5 or more separate lots to be called a subdivisionB. Sales contracts with deposits can be accepted on subdivision lots prior to plat approvalC. A developer of all new subdivisions must have streets approved, based on construction standards set by the NC DOT and must declare the streets to be for public or private use.D. Just because the streets have been dedicated for public use and approved by the NCDOT does not mean the DOT has assumed responsibility for maintenance of streets

• Just because the streets have been dedicated for public

use and approved by the NCDOT does not mean the DOT has assumed responsibility for maintenance of streets An NCBA/NCAR 2-T Offer to Purchase and Contract offered for use by a real estate brokerI. must not include a disclaimer of liability on the part of the brokerII. can include any agent compensation that is being split with the buyer in the contractA. I onlyB. II onlyC. Both I and IID. Neither I or II

• I only

A broker who is a sole proprietor must designate himself or herself as a BICA. if the broker is involved in more than one transaction a yearB. if the broker engages in any transaction where the broker is required to deposit and maintain monies belonging to others in a trust accountC. if the broker refers consumers to brokers in NC for a referral feeD. even if he or she supervises no licensees.

• if the broker engages in any transaction where the

broker is required to deposit and maintain monies belonging to others in a trust account In NC, the term provisional broker refers toA. A REALTORB. a licensee who must operate under the supervision of a broker-in-chargeC. a licensee who must focus on a specialty area of real estateD. an individual who has invested in real estate

• a licensee who must operate under the supervision of a

broker-in-charge The primary function of a property manage is toA. generate the highest possible cash flow for the ownerB. preserve the long-term resale value of the propertyC. preserve the value of an investment property while generating incomeD.create a tax loss for the owner while maintaining resale value

• preserve the value of an investment property while

generating income 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, theA. seller is contractually boundB. buyer is contractually boundC. both parties are contractually boundD. buyer can still withdraw the offer

• buyer can still withdraw the offer

Adaptations of property specifications after lease signing to suit a tenant's personal taste are generallyA. tax-exempt improvementsB. tenant improvementsC. prohibited by most non-residential leasesD. a good opportunity for the owner to increase desirability of the property to future renters

• tenant improvements

Provisional brokersA. must successfully complete 3 post licensing coursesB. must complete continuing Ed courses June 1-10 of their first license yearC. must complete all post-licensing and continuing education requirements in a timely manner if they want their licenses to remain currentD. must be on active status

• must successfully complete 3 post licensing courses

A businessman agrees to lease a barber shop from a landlord. The party responsible for the expense of making repairs to the interior of the building would MOST likely beA. shared equally by the landlord and the tenantB.determined by negotiation of the partiesC. the landlord under the NC Residential Rental Agreements ActD. the tenant

• determined by negotiation of the parties

What government power allows the state to acquire title to property that has been abandoned?A. Eminent domainB.TaxationC. Police powerD. Escheat

• Escheat

A theater or hotel would be classified under the real estate category ofA. ResidentialB. CommercialC. AgriculturalD.Industrial

• Commercial

If a broker receives multiple offers on a listing, the broker must Present all offers at ONCE In preparing for variable expenses in a budget, the property manager should set upA. a control accountB. a floating allocationC. a cash reserve fundD. an asset account

• a cash reserve fund

Under the NC Residential Property Disclosure Act, the seller mustI. provide a completed property disclosure form to the buyer before the buyer makes an offerII. disclose all known property defects on the mandatory formA. I onlyB. II onlyC. Both I and IID. Neither I or II

• I only

A semiannual statement sent to an owner that does NOT reflect the entire debt service as an expense is called a(n)A. cash flow reportB. a profit and loss statementC. a budget comparison statementD. an operating budget statement

• a profit and loss statement

A written real estate contract is presumed to be the complete agreement of the parties to a contract because of theA. doctrine of caveat emptorB. statute of fraudsC. parol evidence ruleD. statute of limitations

• parol evidence rule

Real property is often referred to as a bundle of legal rights.Which of the following is NOT among these rights?A. Right