NC Real Estate Practice Exam correctly
answered already passed
Method of describing land which is NOT used in North Carolina? - correct answer
✔✔Government rectangular survey
In NC, the last day that real estate taxes for the current year may be paid without penalty is? -
correct answer ✔✔By January 5th of the next year
A description of property that reads "Beginning at the large oak tree on the Northern line of
State Road 18, approximately one mile west to the intersection state road and the Great
Southern Railroad right-of-way ,north approximately 15' along the drainage ditch".............. is -
correct answer ✔✔Legal desritiopn that could be used in NC & metes and bounds description.
To be valid in NC, a deed must include - correct answer ✔✔Words of Conveyance
All these freehold estates can pass by inheritance EXCEPT a......... - correct answer
✔✔Conventional life estate
Deed that contains no warranties at all and may convey no title at all, depending on the
Grantors interest in the property when the deed is execute? - correct answer ✔✔Quitclaim
Deed
The NC law that provides a contract to sell land is not protected against third party unless
recorded is called the .......... - correct answer ✔✔Conner Act
,Th deed that contains covenants against all encumbrances that would affect the title conveyed
and assures quiet enjoyment if the............................... - correct answer ✔✔General Warranty
Deed
A woman grants a life estate to her grandson and stipulate that on the grandsons death, the
title to the property will pass to her son- in-law. This second estate is known as an estate -
correct answer ✔✔In remainder
A tenancy for years is a tenancy that - correct answer ✔✔expires on a specific date.
A builder built a structure with six stories. Several years later, an ordinance was passed in that
area banning any building higher than four stories. The building should be allowed to continue
in its existing state because of a - correct answer ✔✔nonconforming use
Under the NC Statute of Frauds, an oral lease for longer than three years is..... - correct answer
✔✔unenforceable
Police power does NOT include - correct answer ✔✔deed restrictions
A cloud on title to a property may be cured by - correct answer ✔✔obtaining quitclaim deeds
from the party or parties with possible interests in the property.
Which of the following is true regarding liens in NC? - correct answer ✔✔A specific lien is a lien
against a particular parcel of real estate, while a general lien may apply to all of the debtors
property.
Someone seeking to be excused from the dictates of a zoning ordinance because of hardship
should request a - correct answer ✔✔Variance
,Under the concept of riparian rights, North Carolina owners of property adjacent to navigable
rivers and streams have the right to use the water and - correct answer ✔✔Are considered to
own the land to the edge of the water.
A leasehold estate that automatically renews itself at each expiration is a - correct answer
✔✔periodic tenancy
In the real estate transaction in NC, the buyer is responsible for the cost of: - correct answer
✔✔Title insurance
Which of the following does NOT terminate an offer? - correct answer ✔✔An offer from a third
party
What DOES Terminate an Offer? - correct answer ✔✔*Revocation of the offer before its
acceptance
*The death of the offeror before acceptance
*A counteroffer by the offeree
A buyer is under contract to purchase a vacation lot for $50,000. Shortly after going under
contract, the buyer changes her mind. A friend of the buyer would like to buy the lot on the
same terms as the original buyer. The lot owner agrees and enters into a new contract with the
friend. The lot owner and the original buyer tear up the original contract. This is known as -
correct answer ✔✔Novation
An offer to purchase real estate is a binding contract after it has been signed, communicated,
and accepted by whom? - correct answer ✔✔Both the Buyer & Seller
, A broker enters into a listing agreement with the seller wherein the seller will receive $120,000
from the sale of a vacant lot and the broker will receive any sales proceeds exceeding that
amount as commission. This type of agreement is called a - correct answer ✔✔Net listing
While using the NCAR/NCBA Standard 2-T Offer to Purchase and Contract form, buyer and seller
agree upon a 45-day due diligence period. Which of the following is TRUE? - correct answer
✔✔Buyer has no obligation to purchase the property during due diligence period and may be
entitled to a full refund of any earnest money deposit paid.
On Monday, an offer was written to buy a sellers vacant lot for $32,000. On Tuesday, the seller
counteroffers by raising the purchase price to $33,500. The prospective buyer does not reply, so
on Friday, the seller changes his mind and accepts the original price of $32,000. Under these
circumstances, there is - correct answer ✔✔No valid agreement because the sellers
counteroffer was a rejection of the original offer.
Which of the following situations present at signing would result in a void contract? - correct
answer ✔✔The seller has been declared incompetent by a court.
Which of the following items are NOT usually prorated between the Seller and Buyer at closing?
- correct answer ✔✔Tenant Security Deposits
Things that ARE usually prorated between the Seller and Buyer at closing? - correct answer
✔✔Real estate taxes
Prepaid Rents
Owner association dues
- correct answer ✔✔The sellers are not obligated to pay the commission to anyone.
- correct answer ✔✔A listing agreement under which the broker's commission is contingent on
the broker personally producing a ready, willing, and able buyer before the property is sold by
the seller, or another broker.
answered already passed
Method of describing land which is NOT used in North Carolina? - correct answer
✔✔Government rectangular survey
In NC, the last day that real estate taxes for the current year may be paid without penalty is? -
correct answer ✔✔By January 5th of the next year
A description of property that reads "Beginning at the large oak tree on the Northern line of
State Road 18, approximately one mile west to the intersection state road and the Great
Southern Railroad right-of-way ,north approximately 15' along the drainage ditch".............. is -
correct answer ✔✔Legal desritiopn that could be used in NC & metes and bounds description.
To be valid in NC, a deed must include - correct answer ✔✔Words of Conveyance
All these freehold estates can pass by inheritance EXCEPT a......... - correct answer
✔✔Conventional life estate
Deed that contains no warranties at all and may convey no title at all, depending on the
Grantors interest in the property when the deed is execute? - correct answer ✔✔Quitclaim
Deed
The NC law that provides a contract to sell land is not protected against third party unless
recorded is called the .......... - correct answer ✔✔Conner Act
,Th deed that contains covenants against all encumbrances that would affect the title conveyed
and assures quiet enjoyment if the............................... - correct answer ✔✔General Warranty
Deed
A woman grants a life estate to her grandson and stipulate that on the grandsons death, the
title to the property will pass to her son- in-law. This second estate is known as an estate -
correct answer ✔✔In remainder
A tenancy for years is a tenancy that - correct answer ✔✔expires on a specific date.
A builder built a structure with six stories. Several years later, an ordinance was passed in that
area banning any building higher than four stories. The building should be allowed to continue
in its existing state because of a - correct answer ✔✔nonconforming use
Under the NC Statute of Frauds, an oral lease for longer than three years is..... - correct answer
✔✔unenforceable
Police power does NOT include - correct answer ✔✔deed restrictions
A cloud on title to a property may be cured by - correct answer ✔✔obtaining quitclaim deeds
from the party or parties with possible interests in the property.
Which of the following is true regarding liens in NC? - correct answer ✔✔A specific lien is a lien
against a particular parcel of real estate, while a general lien may apply to all of the debtors
property.
Someone seeking to be excused from the dictates of a zoning ordinance because of hardship
should request a - correct answer ✔✔Variance
,Under the concept of riparian rights, North Carolina owners of property adjacent to navigable
rivers and streams have the right to use the water and - correct answer ✔✔Are considered to
own the land to the edge of the water.
A leasehold estate that automatically renews itself at each expiration is a - correct answer
✔✔periodic tenancy
In the real estate transaction in NC, the buyer is responsible for the cost of: - correct answer
✔✔Title insurance
Which of the following does NOT terminate an offer? - correct answer ✔✔An offer from a third
party
What DOES Terminate an Offer? - correct answer ✔✔*Revocation of the offer before its
acceptance
*The death of the offeror before acceptance
*A counteroffer by the offeree
A buyer is under contract to purchase a vacation lot for $50,000. Shortly after going under
contract, the buyer changes her mind. A friend of the buyer would like to buy the lot on the
same terms as the original buyer. The lot owner agrees and enters into a new contract with the
friend. The lot owner and the original buyer tear up the original contract. This is known as -
correct answer ✔✔Novation
An offer to purchase real estate is a binding contract after it has been signed, communicated,
and accepted by whom? - correct answer ✔✔Both the Buyer & Seller
, A broker enters into a listing agreement with the seller wherein the seller will receive $120,000
from the sale of a vacant lot and the broker will receive any sales proceeds exceeding that
amount as commission. This type of agreement is called a - correct answer ✔✔Net listing
While using the NCAR/NCBA Standard 2-T Offer to Purchase and Contract form, buyer and seller
agree upon a 45-day due diligence period. Which of the following is TRUE? - correct answer
✔✔Buyer has no obligation to purchase the property during due diligence period and may be
entitled to a full refund of any earnest money deposit paid.
On Monday, an offer was written to buy a sellers vacant lot for $32,000. On Tuesday, the seller
counteroffers by raising the purchase price to $33,500. The prospective buyer does not reply, so
on Friday, the seller changes his mind and accepts the original price of $32,000. Under these
circumstances, there is - correct answer ✔✔No valid agreement because the sellers
counteroffer was a rejection of the original offer.
Which of the following situations present at signing would result in a void contract? - correct
answer ✔✔The seller has been declared incompetent by a court.
Which of the following items are NOT usually prorated between the Seller and Buyer at closing?
- correct answer ✔✔Tenant Security Deposits
Things that ARE usually prorated between the Seller and Buyer at closing? - correct answer
✔✔Real estate taxes
Prepaid Rents
Owner association dues
- correct answer ✔✔The sellers are not obligated to pay the commission to anyone.
- correct answer ✔✔A listing agreement under which the broker's commission is contingent on
the broker personally producing a ready, willing, and able buyer before the property is sold by
the seller, or another broker.
