NC Real Estate Exam National Flashcards

NC Real Estate Exam (National) Flashcards The VA guarantees a portion of a VA loan up to the stated

entitlement found in the:

certificate of eligibility.The certificate of eligibility outlines the portion of the loan that the VA will guarantee, which is known as the guarantee or entitlement. The certificate of reasonable value is similar to an appraisal. The veteran must be allowed to terminate a sales contract if the sales price exceeds the CRV. HUD oversees the FHA loan program.If no real estate agent is involved, which of the following would violate Federal Fair Housing Laws?A single female owner refusing to rent a single-family home to a group of three menOffice properties are not regulated by Fair Housing laws. There are exceptions under the Federal laws for an owner-occupied single-family home and a duplex, triplex, or quad when the owner occupies one of the units. There are no exceptions for single-family rental units. Tenants are protected based on race, handicap/disability, color, religion, sex, familial status, and national origin.A makes an offer to purchase B's property located at 101 Jones Ferry Avenue on April 10 through his agent. B's agent delivers the signed offer to the seller on April 11. B accepts A's offer by signing the document. B's agent is extremely busy and plans to deliver the signed document on April 12. A, after much consideration, decides to withdraw her offer on April 11th, providing email notice to A's agent. A's agent leaves a message on the B's agent voicemail, which B's agent has not received. Prior to receiving the voicemail regarding withdrawal, the 's delivers the signed document to A's buyer agent on April 12. What is the status of this transaction?The offer is withdrawn and a legally binding contract has not formed.A legally binding contract cannot form since the listing broker failed to notify the buyer or buyer's agent of the seller's acceptance. Withdrawal of the offer was effective when the buyer's agent left the voicemail to the listing agent. In order to form a legally binding contract, there must be an offer, unconditional acceptance, and communication of acceptance to the offering party.Withdrawal is similar in that it must make it to the other side to be effective. Reading an email or listening to the voicemail is not required for proper notification; it only has to be received into the email or voicemail system.Brokers are entitled to compensation when a ready, willing, and able buyer makes an offer that meets all of the seller's terms or the seller agrees to a lower offer and the property goes under contract. The offer was not accepted and therefore is insufficient information to determine that the brokers are entitled to compensation. Specific performance is used to enforce a legally binding contract. A legally binding contract has not formed.A tenant rents a house for an initial term of 18 months starting April 20, 2018 through September 20, 2019 for $950 per month. This lease requires a 60-day notice to vacate. The tenant most likely has which type of leasehold interest?Estate from Period to PeriodMost apartment/house leases are estates from period to period because they are characterized by the auto-renewal and do not terminate unless notice to vacate is provided. And estate for years is like a vacation rental with a firm start and end date and no

auto-renewing. An estate at will is for an indefinite time period while an estate at sufferance occurs when a PREVIOUS leasehold expired and the tenant refuses to leave despite the owner demanding them to leave.

Which of the following would violate fair housing laws regarding advertising?Near a great Catholic schoolGreat Catholic school is not acceptable per HUD guidelines because of religious

preference. NOTE: Advertising a chapel on-premises is

allowed as it does not show a religious preference.Bachelor or bachelorette pad are permitted; however, advertising a property for men or women is not based on sex. An antebellum home was built before the civil war.While an antebellum home or plantation home may negatively connotate, it is not considered a violation of fair housing.The Do Not Call registry permits real estate agents to call which of the following groups?friends and familyEven if your family and friends are on the DNC you are permitted to call them. Do-Not-Call regulations allow you to call someone on the list if you had a business relationship within the past 18 months and calling online leads who initiate contact is permissible for 3 months. Political surveyors are exempt from DNC regulations.The cornerstone of the market data approach is which of the following?SubstitutionSubstitution is the cornerstone. If two identical properties are for sale, the one with the lower price will sell first. Contribution determines how much an item adds to the property value. Profitable markets, such as flipping houses, attracts competition. Supply and demand impact the overall value of a property.When calculating the capital gain or loss on the sale of a

property, the amount realized is:

the difference between the sales price and allowable closing costs.The amount realized is the sales price of the property less allowable closing costs. Adjusted basis is calculated by taking the purchase price and adding capital improvements and allowable closing costs. The calculation of gain or loss is calculated by taking the amount realized

and subtracting adjusted basis. NOTE: The purchase price

may also be referred to as BASIS.A limited services listing agent failed to discover and disclose an obvious discrepancy in square footage that was placed into a multiple listing service. The buyer learned of the mistake after closing. Which of the following statements is TRUE?The agent is guilty of a negligent misrepresentationThis is certainly a misrepresentation, likely a negligent one, because the agent did not do enough diligence to be minimally competent. Disclaimers are not a defense against misrepresentations. Sellers owe nothing to buyers.Agents are not required to measure homes (although it is

highly suggested). NOTE: It is important to know the

difference between a misrepresentation (a lie), omission (withholding information) and false promises (making promises to induce the sale that are not kept).A broker is working with a buyer client with an oral buyer agency agreement. The buyer uses the same broker's services to complete the purchase of a property listed with a different firm. At settlement, which broker or brokers will

likely be due a commission?The listing agent and the selling agentThe seller pays the listing agent and then likely will share it with the selling agent. The selling agent is the agent that brings the buyer into the transaction and completes the sale.