NC Real Estate Post-Licensing – 301 – Practice Questions with Correct Answers (North Carolina, 2027) – Complete Exam Preparation

NC Real Estate Post-Licensing – 301 – Practice Questions with Correct Answers (North Carolina, 2027) – Complete Exam Preparation If you miss the 6/10 Deadline for CE what must you do to re-activate your license? - ANSWER -Complete latest General Update (4 Hours), and 3 CE Classes (4 hours each) Total of 16 hours Under NC License Law who can be held responsible for reporting Material Facts? - ANSWER -Only Agents... (License Law) Under Civil /Criminal law who can be held responsible for reporting Material Facts? - ANSWER -Principles Name the 4 types of Material Facts - ANSWER -Facts about the property, facts that relate to the property, facts relating to the ability to close the transaction, and facts of special importance Who must Material Facts be disclosed to? - ANSWER -All parties, including 3rd Parties regardless of who you represent Who can The Real Estate Commission fine? - ANSWER -Time Share Developers Willfull Omission means - ANSWER -You knew but you didn't disclose Willfull Misrepresentation means - ANSWER -You lied, by speaking wrong information Negligent Omission means - ANSWER -You should have known, but did not Negligent Misrepresentation means - ANSWER -You should have known, but spoke wrong information May a principle be held responsible for mis-information as it relates to a material fact? - ANSWER -Yes. Typically civilly or criminally The provision in a listing agreement that may obligate seller to pay a commission after the agreement has expired is called? - ANSWER -Override Clause or Extender Clause A listing agreement is said to be what, if the principle dies during the agreement? - ANSWER -Automatically Terminated If a Seller refuses to sign an offer for less than list price, is a commission due? - ANSWER -No. It is not due, until Seller agrees upon the price and signs What are considered Trigger items in Regulation Z? - ANSWER -Any numbers or numerical characters Is a CMA mandatory when listing a property? - ANSWER -Yes. It is an agent's duty to perform a CMA for Seller What would a "Latent" material fact be? - ANSWER -A very well hidden fact... (Behind Walls) Is a broker with multiple buyers considered a dual agent? - ANSWER -No, A dual agent represents both principles in a single transaction Does the WWREA brochure have an option for Seller Sub Agency? - ANSWER Yes. it is a check box on the last page May an unlicensed employee designate an agent for dual agency? - ANSWER Yes. If there is a company policy stating this May a Principle refuse to sign the WWREA? - ANSWER -Yes. Agent just needs to write "Refused to sign" When measuring the square footage of stairs always remember to? - ANSWER Include the square footage on the first floor, and include the square footage on the 2nd floor as well A CMA is not a representation of Value but is a? - ANSWER -Representation of a range of suggested selling price May an agent do a CMA/BPO for a bank? - ANSWER -No. Agents cannot perform either for the purposes of a loan or mortgage. This must be done by appraisers Typically if a Seller is not that motivated to sell the price would tend to be... - ANSWER -At the higher range of the CMA In Qualifying Ratios what is included in the Front End? - ANSWER -Principle payment, Interest, Taxes Insurance, PMI & HOA In Qualifying Ratios what is included in the Back End? - ANSWER -Everything from the front end + Recurring Debt Payments What are the Qualifying Ratios for a conventional loan? - ANSWER -28% / 36% To figure out if a buyer is eligible for a loan based on Front End criteria, the formula is what? - ANSWER -PITII + HOA Divided by Gross Monthly Income To figure out if a buyer is eligible for a loan based on Back End criteria, the formula is what? - ANSWER -PITII + HOA + Recurring Monthly Debts Divided by Gross Monthly Income If a Seller wants to net exactly $50,000 but must pay 7% commission, plus a $1200 settlement fee, then what price must the property sell at? - ANSWER 50,000+1200=51,200 then 51,200 divided by 93% = $55,053.76