North Carolina Premium Real Estate Exam Cheat Sheet Flashcards

North Carolina Premium Real Estate Exam Cheat Sheet Flashcards CompetitionBuyer Sam purchased a run down residential home in aneighborhood with many nice well kept properties.Samintends to renovate the home and resell it for a profit.Considering the nicer homes in the neighborhood helpraise his property value, what appraisal principle is Samleveraging?A. RegressionB. ProgressionC.AssemblageD. Substitution No, the seller had no knowledge of the issue Leslie is showing her listing to some prospectivebuyer customers. Leslie grew up just down theroad and knows this property was once used as adumpsite many years ago.Does Leslie have tomake the prospective buyers aware of thisinformation since they are customers and notclients?A.No, the seller is responsible for disclosuresB. No, they are not clientsC. Yes, the agent must discloseD. No, buyers are responsible for inspections Comparative Market AnalysisPaul owns an older residential property in an area now zoned for commercial use. Paul decides to renovate the home into a laundry mat. The change in the properties functionality for Paul's financial gain is an example of

what:A. Highest and Best UseB. SubstitutionC.

AssemblageD. Conformity $191,442Callie made an offer on a home and isunder contract for $250,000. She obtaineda loan of $225,000 and the home appraisedat $255,000. What is the loan to valueratio?A.

98%B. 88%C. 92%D. 90%

mortgageDonnie's neighbor Paul has an easement tocross Donnie's property to get to his own.The easement is recorded and transfers withthe land if either Donnie or Paul sell theirproperty. When an easement is on a title it isan

example of an:A. EncroachmentB. EstoppelC.

EncumbranceD. Equitable title

• daysAndy's Arcade has been in business in the same location

for 15 years. The city recently rezoned the area, no longer allowing commercial usage. Soon after the rezoning, Andy's suffered a devastating fire and the arcade was a total loss. What will Andy need to obtain from the city in order to rebuild the arcade in the same location?A. Andy can not rebuild in the same locationB. Andy will need to obtain a varianceC. Andy will only need a building permitD.Andy must get approval from the EPA

$356How many acres are in a lot that measures250 x 325?A.

1.66B. 1.52C. 1.86D. 1.89

Private Mortgage InsuranceFair housing regulations apply not only toreal estate agents but also lenders. When alender denies a mortgage application solelybased on the racial demographics of theneighborhood the property is located in thelender is

guilty of:A. SteeringB. RedliningC. Mortgage FraudD. Panic

Selling ExecutoryEric rents an apartment at only 17 years old. Thelease agreement contract is voidable because Ericis not of legal age to enter a contract but who hasthe ability to void the agreement?A. The LandlordB. EricC. A lawyerD. No one A legal descriptionWhich of the following is NOT a requirementfor a contract to be valid and enforceable?A. Competent PartiesB.AuthorityC. NotarizationD. Valuable Consideration CustomersWhat duty requires a licensee to follow the principal'sorders and requests as long as they are not unethicalor illegal?A.ObedienceB. AccountabilityC. DisclosureD. Honesty Trade FixturesWhat is the accumulation of land caused bythe natural flow of water called?A. ErosionB. AccretionC. AvulsionD.Alluvion ObedienceMelissa went on a listing appointment and the sellerswere asking legal questions. Questions she feltcertain she knew the answers to, what should Melissado?A. Suggest they seek legal counselB. Answer the questionsC. Tell them she will find out and get back to themD. Tell them she doesn't know for sure steeringA Hispanic man called a landlord regarding a home for rentonline. The landlord tells him the property is already rented.His white friend then called the landlord to inquire about theproperty and he arranged an appointment to show

him thehome. This is discrimination based on:A. RaceB.

Familial StatusC. IncomeD. Religion DuressA contract that does not have all the necessaryelements of

a contract is:A. ValidB. VoidC. Enforceable my

insinuationD. Legally Binding Paying the debt and filing a stratification ofjudgmentLiens on a title may be voluntary orinvoluntary. Which of the following is anexample of a voluntary lien?A.MortgageB. JudgmentC. Child support lienD. Tax lien E&O Insurance will not cover negligence of a Broker selling property he owns.Karen recently sold a home for 6%commission. If her commission was $20,700.How much did the property sell for?A. $340,000B. $342,000C. $345,000D. $348,000 EncroachmentMarvin owns an easement to use thedriveway of his

neighbor Bob. Marvin'sproperty is considered the:A.

Servient EstateB. Life EstateC. dominant estateD. Freehold

Estate Update the seller's disclosure to include theroof issuesDisclosure law specifics vary by state, however, inwhich type of transaction would the seller'sproperty disclosure

generally NOT be required?A. Residential Arm's Length TransactionB. Triplex PurchaseC. Residential ForeclosureD. Mobil Home Purchase