Real Estate U Final Exam | Actual i,- i,- i,- i,- i,- i,- i,-
Questions with Verified Answers| 100% i,- i,- i,- i,- i,-
Correct| Latest 2025/2026 Update. i,- i,- i,-
A buyer makes a written offer to purchase a property and
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
includes a $2,500 earnest money deposit. The seller makes a
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
counteroffer for more money. The buyer verbally accepts. The i,- i,- i,- i,- i,- i,- i,- i,- i,-
listing agent deposits the money in the trust account at this point
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
in time. When the buyer receives the seller's counteroffer, he
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
refuses to sign even though he had verbally agreed earlier. The
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
seller is angry and tells the buyer that he will not return the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
earnest deposit since the buyer has reneged on his word. In fact,
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the seller demands that the listing agent give him the deposit.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
What must the real estate agent do regarding the earnest money
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
in this situation?
i,- He must retain the deposit in the trust
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
account until he obtains written permission from the buyer and
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
seller or await a court order.
i,- i,- i,- i,- i,-
While a broker was inspecting a property for listing, the property
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
owner told the broker the house contained 2,400 square feet of
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
heated living area. Relying on this information, the broker listed
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the property and represented it to prospective buyers as
i,- i,- i,- i,- i,- i,- i,- i,- i,-
containing 2,400 square feet. After purchasing the property, the
i,- i,- i,- i,- i,- i,- i,- i,- i,-
buyer accurately determined that there were only 1,850 square
i,- i,- i,- i,- i,- i,- i,- i,- i,-
feet and sued for damages for the difference in value between
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
,2,400 square feet and 1,850 square feet. Which of the following is
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
correct? Both the broker and the seller are liable.
i,- i,- i,- i,- i,- i,- i,- i,- i,-
A provisional broker licensee on active status has just taken
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
continuing education classes for the first time. These classes were
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
taken before the deadline for completion. He took the BICUP
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
course and one elective. What will be his license status as of July
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
1? Inactive
i,- i,-
Amy is looking to obtain a loan to purchase a new house. Her
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
monthly mortgage payment (PITI) will be $3,650 per month.
i,- i,- i,- i,- i,- i,- i,- i,- i,-
Amy's gross monthly income (her salary) is $12,000 per month.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
The lender requires a front-end ratio of no more than 32%. Will
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Amy qualify for a loan?
i,- The answer is Yes because Amy's i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
front-end ratio equals $3,650 / $12,000 = 0.304 or 30%.In other
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
words, Amy's total monthly housing expense equals 30% of her
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
gross monthly income, which is less than the lender's
i,- i,- i,- i,- i,- i,- i,- i,- i,-
requirement of 32%. Lenders typically look for a borrower to have i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
a maximum front-end ratio of 28-32%.
i,- i,- i,- i,- i,-
John is applying for a new mortgage. After submitting all of his
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
financials to the lender, the lender calculates that John's total
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
monthly debt obligations (mortgage, car loan, and student loans)
i,- i,- i,- i,- i,- i,- i,- i,- i,-
will equal $5,640 per month. John's gross monthly income (his
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
salary) equals $13,000 per month. Assuming the lender requires a
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
maximum debt-to-income ratio of 42%, will John qualify for the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
,mortgage? The answer is No because John's debt-to-income i,- i,- i,- i,- i,- i,- i,- i,- i,-
ratio equals $5,640 / $13,000 = 0.439 or 43.9%. Since his debt-to-
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
income ratio exceeds the lender's requirement of 42% John
i,- i,- i,- i,- i,- i,- i,- i,- i,-
cannot qualify for the loan. Lenders typically look for a borrower
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
to have a maximum back-end-ratio of 36-43%.
i,- i,- i,- i,- i,- i,-
CMA: The subject property has three bedrooms. Comp #2 has
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
two bedrooms.Based on the broker's analysis, a bedroom in this
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
neighborhood is worth $6,000. The subject property also has an i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
attached garage, while Comp #2 has a detached garage.The i,- i,- i,- i,- i,- i,- i,- i,- i,-
attached garage adds $2,000 in value. Comp #2 has a pool, while
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the subject property does not. A pool is worth around $4,000. If
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Comp #2 sold for $280,000, what should be the value of the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
subject property? To find the answer, we need to adjust the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
sales price of Comp #2 based on the superior and inferior
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
features of the subject property. You have to adjust the sales
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
price of the comparable property up or down based on superior
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
and/or inferior features of the subject property. If the subject
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
property is superior, then add value to the sales price of the comp.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
If the subject property is inferior, then subtract value from the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
sales price of the comp. i,- i,- i,- i,-
The subject property is more valuable than Comp #2 by $6,000
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
for the extra bedroom and $2,000 for the attached garage.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
However, the subject property is less valuable than Comp #2 by i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
$4,000 for the pool. i,- i,- i,-
, Therefore, the value of the subject property equals $280,000 +
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
$6,000 + $2,000 - $4,000 = $284,000
i,- i,- i,- i,- i,- i,-
A broker licensee may be disciplined by the NC Real Estate
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Commission for which of the following actions? Drafting a i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
financing contingency addendum at the buyer's request
i,- i,- i,- i,- i,- i,-
In North Carolina, unpaid property taxes lawfully constitute a lien
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
against the property as of what date?
i,- January 1 of the current
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
tax year i,-
Which of the following is true regarding closing statements in
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
North Carolina? The broker does not have to personally
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
prepare the closing statement. i,- i,- i,-
According to the Statute of Frauds, which of the following leases
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
must be in writing in order to be enforceable?
i,- i,- A lease for
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
more than three years
i,- i,- i,-
Betsy Buyer is in the market to purchase a new house. She has
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
decided that she will not be represented by a licensed buyer's
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
agent but wishes instead to be paid the buyer's agent
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Questions with Verified Answers| 100% i,- i,- i,- i,- i,-
Correct| Latest 2025/2026 Update. i,- i,- i,-
A buyer makes a written offer to purchase a property and
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
includes a $2,500 earnest money deposit. The seller makes a
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
counteroffer for more money. The buyer verbally accepts. The i,- i,- i,- i,- i,- i,- i,- i,- i,-
listing agent deposits the money in the trust account at this point
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
in time. When the buyer receives the seller's counteroffer, he
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
refuses to sign even though he had verbally agreed earlier. The
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
seller is angry and tells the buyer that he will not return the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
earnest deposit since the buyer has reneged on his word. In fact,
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the seller demands that the listing agent give him the deposit.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
What must the real estate agent do regarding the earnest money
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
in this situation?
i,- He must retain the deposit in the trust
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
account until he obtains written permission from the buyer and
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
seller or await a court order.
i,- i,- i,- i,- i,-
While a broker was inspecting a property for listing, the property
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
owner told the broker the house contained 2,400 square feet of
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
heated living area. Relying on this information, the broker listed
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the property and represented it to prospective buyers as
i,- i,- i,- i,- i,- i,- i,- i,- i,-
containing 2,400 square feet. After purchasing the property, the
i,- i,- i,- i,- i,- i,- i,- i,- i,-
buyer accurately determined that there were only 1,850 square
i,- i,- i,- i,- i,- i,- i,- i,- i,-
feet and sued for damages for the difference in value between
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
,2,400 square feet and 1,850 square feet. Which of the following is
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
correct? Both the broker and the seller are liable.
i,- i,- i,- i,- i,- i,- i,- i,- i,-
A provisional broker licensee on active status has just taken
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
continuing education classes for the first time. These classes were
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
taken before the deadline for completion. He took the BICUP
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
course and one elective. What will be his license status as of July
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
1? Inactive
i,- i,-
Amy is looking to obtain a loan to purchase a new house. Her
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
monthly mortgage payment (PITI) will be $3,650 per month.
i,- i,- i,- i,- i,- i,- i,- i,- i,-
Amy's gross monthly income (her salary) is $12,000 per month.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
The lender requires a front-end ratio of no more than 32%. Will
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Amy qualify for a loan?
i,- The answer is Yes because Amy's i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
front-end ratio equals $3,650 / $12,000 = 0.304 or 30%.In other
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
words, Amy's total monthly housing expense equals 30% of her
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
gross monthly income, which is less than the lender's
i,- i,- i,- i,- i,- i,- i,- i,- i,-
requirement of 32%. Lenders typically look for a borrower to have i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
a maximum front-end ratio of 28-32%.
i,- i,- i,- i,- i,-
John is applying for a new mortgage. After submitting all of his
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
financials to the lender, the lender calculates that John's total
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
monthly debt obligations (mortgage, car loan, and student loans)
i,- i,- i,- i,- i,- i,- i,- i,- i,-
will equal $5,640 per month. John's gross monthly income (his
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
salary) equals $13,000 per month. Assuming the lender requires a
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
maximum debt-to-income ratio of 42%, will John qualify for the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
,mortgage? The answer is No because John's debt-to-income i,- i,- i,- i,- i,- i,- i,- i,- i,-
ratio equals $5,640 / $13,000 = 0.439 or 43.9%. Since his debt-to-
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
income ratio exceeds the lender's requirement of 42% John
i,- i,- i,- i,- i,- i,- i,- i,- i,-
cannot qualify for the loan. Lenders typically look for a borrower
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
to have a maximum back-end-ratio of 36-43%.
i,- i,- i,- i,- i,- i,-
CMA: The subject property has three bedrooms. Comp #2 has
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
two bedrooms.Based on the broker's analysis, a bedroom in this
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
neighborhood is worth $6,000. The subject property also has an i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
attached garage, while Comp #2 has a detached garage.The i,- i,- i,- i,- i,- i,- i,- i,- i,-
attached garage adds $2,000 in value. Comp #2 has a pool, while
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the subject property does not. A pool is worth around $4,000. If
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Comp #2 sold for $280,000, what should be the value of the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
subject property? To find the answer, we need to adjust the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
sales price of Comp #2 based on the superior and inferior
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
features of the subject property. You have to adjust the sales
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
price of the comparable property up or down based on superior
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
and/or inferior features of the subject property. If the subject
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
property is superior, then add value to the sales price of the comp.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
If the subject property is inferior, then subtract value from the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
sales price of the comp. i,- i,- i,- i,-
The subject property is more valuable than Comp #2 by $6,000
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
for the extra bedroom and $2,000 for the attached garage.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
However, the subject property is less valuable than Comp #2 by i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
$4,000 for the pool. i,- i,- i,-
, Therefore, the value of the subject property equals $280,000 +
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
$6,000 + $2,000 - $4,000 = $284,000
i,- i,- i,- i,- i,- i,-
A broker licensee may be disciplined by the NC Real Estate
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Commission for which of the following actions? Drafting a i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
financing contingency addendum at the buyer's request
i,- i,- i,- i,- i,- i,-
In North Carolina, unpaid property taxes lawfully constitute a lien
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
against the property as of what date?
i,- January 1 of the current
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
tax year i,-
Which of the following is true regarding closing statements in
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
North Carolina? The broker does not have to personally
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
prepare the closing statement. i,- i,- i,-
According to the Statute of Frauds, which of the following leases
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
must be in writing in order to be enforceable?
i,- i,- A lease for
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
more than three years
i,- i,- i,-
Betsy Buyer is in the market to purchase a new house. She has
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
decided that she will not be represented by a licensed buyer's
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
agent but wishes instead to be paid the buyer's agent
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
