NC prelicensing exam Correct 100%
Time share - ANSWER A right to occupy a unit during 5 or more separate time periods
over a period of at least 5 years, can be freehold or non-freehold estate
What are other names for a time share? - ANSWER Vacation lease, prepaid hotel
reservation, club membership, limited partnership or vacation bond
How long does someone have to cancel a time share contract? - ANSWER 5 days
How long must a time share developer keep money in a trust account? - ANSWER 10
days before moving to operating expense account
Does a time share developer need a real estate license? - ANSWER No
How does the real estate commision keep unlicensed developers from committing
violations? - ANSWER Fines- $500 for each violation or revoke the registration for their
project
What happens if developer does not show the public offering statement to buyer? -
ANSWER Can be fined 10% of sales price up to $3,000
What is real estate? - ANSWER The land plus anything permanently attached to the
land
What is the legal bundle of rights concept? - ANSWER The right to sell: sell, give away,
mortgage, will, enjoy, possess, exclude others profit
What is the definition of appurtenances? - ANSWER Any improvement made to the land
that stays with the land or automatically transfers with the title
Give examples of appurtenances - ANSWER Fructus naturales, subsurface rights, air
rights, easements, riparian rights
Are fructus industrials considered appurtenances? - ANSWER No
What are fructus industrials? - ANSWER Fruits of industry ex. Apples pecans etc
Do air and subsurface rights transfer with the land? - ANSWER Yes
What are examples of navigable waters? - ANSWER Stream river or lake
What are examples of littoral rights? - ANSWER Large lakes or oceans
, What are examples of non navigable waters? - ANSWER Small streams or ponds
If a property owner has a property with littoral rights where does their property line end?
- ANSWER Owns to mean high water mark or waters edge
What is a qualifying broker? - ANSWER The contact person for the firm and is
responsible to the commission
What is the only type of firm that doesn't need to file a license application with the
commission? - ANSWER Sole proprietorships
Who else besides the commission needs to approve of a firm before it is legal? -
ANSWER Secretary of State
What does each firm need to have? - ANSWER Bic
What is the difference between an employee and an independent contractor? -
ANSWER Employee- w2, set hours, vacation
Independent- 1099 firm, bic can't have complete control over hours, no mandatory
meetings
What is a corporation? - ANSWER A type of business ownership that includes
shareholders (through the purchase of stocks) and limits personal liability
What is limited liability Corp LLC? - ANSWER Offers limited liAbilities with a partnership
where every owner is considered a manager
What are general partners? - ANSWER Control and operate business share profits and
losses
What kind of partnership is not involved in the running of the business but are liable for
business losses up to the amount of the individual's investment? - ANSWER Limited
partnership or silent partners
What is a sole proprietorship? - ANSWER 1 person owns the form but may still have
others working on their behalf
Which type of firm offers the least in liability protection and tax advantages? - ANSWER
Sole proprietorship
Is a firm license required for a sole proprietorship? - ANSWER No
In a sole proprietorship who is likely the bic and qualifying broker? - ANSWER The
owner
Time share - ANSWER A right to occupy a unit during 5 or more separate time periods
over a period of at least 5 years, can be freehold or non-freehold estate
What are other names for a time share? - ANSWER Vacation lease, prepaid hotel
reservation, club membership, limited partnership or vacation bond
How long does someone have to cancel a time share contract? - ANSWER 5 days
How long must a time share developer keep money in a trust account? - ANSWER 10
days before moving to operating expense account
Does a time share developer need a real estate license? - ANSWER No
How does the real estate commision keep unlicensed developers from committing
violations? - ANSWER Fines- $500 for each violation or revoke the registration for their
project
What happens if developer does not show the public offering statement to buyer? -
ANSWER Can be fined 10% of sales price up to $3,000
What is real estate? - ANSWER The land plus anything permanently attached to the
land
What is the legal bundle of rights concept? - ANSWER The right to sell: sell, give away,
mortgage, will, enjoy, possess, exclude others profit
What is the definition of appurtenances? - ANSWER Any improvement made to the land
that stays with the land or automatically transfers with the title
Give examples of appurtenances - ANSWER Fructus naturales, subsurface rights, air
rights, easements, riparian rights
Are fructus industrials considered appurtenances? - ANSWER No
What are fructus industrials? - ANSWER Fruits of industry ex. Apples pecans etc
Do air and subsurface rights transfer with the land? - ANSWER Yes
What are examples of navigable waters? - ANSWER Stream river or lake
What are examples of littoral rights? - ANSWER Large lakes or oceans
, What are examples of non navigable waters? - ANSWER Small streams or ponds
If a property owner has a property with littoral rights where does their property line end?
- ANSWER Owns to mean high water mark or waters edge
What is a qualifying broker? - ANSWER The contact person for the firm and is
responsible to the commission
What is the only type of firm that doesn't need to file a license application with the
commission? - ANSWER Sole proprietorships
Who else besides the commission needs to approve of a firm before it is legal? -
ANSWER Secretary of State
What does each firm need to have? - ANSWER Bic
What is the difference between an employee and an independent contractor? -
ANSWER Employee- w2, set hours, vacation
Independent- 1099 firm, bic can't have complete control over hours, no mandatory
meetings
What is a corporation? - ANSWER A type of business ownership that includes
shareholders (through the purchase of stocks) and limits personal liability
What is limited liability Corp LLC? - ANSWER Offers limited liAbilities with a partnership
where every owner is considered a manager
What are general partners? - ANSWER Control and operate business share profits and
losses
What kind of partnership is not involved in the running of the business but are liable for
business losses up to the amount of the individual's investment? - ANSWER Limited
partnership or silent partners
What is a sole proprietorship? - ANSWER 1 person owns the form but may still have
others working on their behalf
Which type of firm offers the least in liability protection and tax advantages? - ANSWER
Sole proprietorship
Is a firm license required for a sole proprietorship? - ANSWER No
In a sole proprietorship who is likely the bic and qualifying broker? - ANSWER The
owner
