NC Real Estate Final Exam 4
Questions with Accurate Answers
A borrower has a mortgage loan with a principal balance of $168,700. The loan
was a 30 year fixed rate loan at an interest rate of 6.5%. What is the amount of
daily interest the borrower is paying on this loan?
A. $10,965.50
B. $913.79
C. $30.46
D. $30.04 correct answer $30.46
$168,700 x 6.5% = $10,965.50 annual interest divided by 360 = $30.46 daily
interest
A buyer purchased two tracts of land for $1,200 per acre. The first tract of land is
15 acres and the second tract of land is one square mile. What is the total cost of
both tracts of land?
A. $678,000
B. $786,000
C. $876,000
D. $867,000 correct answer $786,000
A mile contains 5,280 feet. The second tract contains 27,878,400 square feet
(5280 x 5280). 27,878,400÷43,560 (square feet in an acre) = 640 aces. 640+15 =
655 acres x $1,200 per acre = $786,000.
,A buyer's broker is showing a home with rooms that are difficult to measure and
which has a number of unusual angles. The buyer has indicated that the square
footage is a material fact to them in the purchase of a home. In attempting to
determine the square footage of the home using the NC Real Estate Commission
Residential Square Footage Guidelines, the broker may reasonably rely on which
of the following?
A. the detailed diagrams and measurements that are provided by the seller
B. the amount of square footage that the listing agent has indicated in the MLS
listing
C. the square footage that is reported in the public records at the county offices
D. the square footage from either an appraisal report or a survey that was
prepared in conjunction with a previous sale of the home correct answer the
amount of square footage that the listing agent has indicated in the MLS listing
A client receives $97,000 from the sale of his home after paying the broker a 6%
commission. What is the broker's commission?
A. $6,817.20
B. $6,191.48
C. $6,000.17
D. $5,820.65 correct answer $6,191.48
The seller's net of $97,000 represents 94% of the total (100%-6%). $97,000÷.94 =
$103,191.48 sales price x 6% commission = $6,191.48.
, A commercial property produces monthly rents of $28,000 and the building has
monthly net operating expenses of $18,000. The seller wants to list the building
for $2,500,000. What is the capitalization rate on this property?
A. 6%
B. 4.8%
C. 21%
D. 48% correct answer 4.8%
The gross income is $336,000 ($28,000 x 12). The operating expenses are
$216,000 ($18,000 x 12). $336,000-$216,000 = $120,000 net operating expenses
(NOI). $120,000÷$2,500,000 = .048 or a 4.8% capitalization rate.
A corporation owns several residential properties and has placed them into an
entity known as Prime Properties, LLC. The corporation is not licensed by the
North Carolina Real Estate Commission. None of the company's salaried
employees have real estate licenses. The LLC wants to sell several of its rental
properties. Which of the following is correct?
A. The LLC will have to hire a brokerage firm in order to sell or transfer these
properties in a real estate transaction.
B. The LLC may sell these properties using its own salaried employees. The LLC
may open a trust account or have the earnest money checks delivered directly to
the closing attorney.
C. The LLC may sell the properties, but they cannot collect any earnest money
from prospective buyers because they do not have an authorized NC Real Estate
Commission trust account.
D. The LLC and its managers are exempt from completing the Residential Property
Owners and correct answer The LLC may sell these properties using its own
salaried employee
Questions with Accurate Answers
A borrower has a mortgage loan with a principal balance of $168,700. The loan
was a 30 year fixed rate loan at an interest rate of 6.5%. What is the amount of
daily interest the borrower is paying on this loan?
A. $10,965.50
B. $913.79
C. $30.46
D. $30.04 correct answer $30.46
$168,700 x 6.5% = $10,965.50 annual interest divided by 360 = $30.46 daily
interest
A buyer purchased two tracts of land for $1,200 per acre. The first tract of land is
15 acres and the second tract of land is one square mile. What is the total cost of
both tracts of land?
A. $678,000
B. $786,000
C. $876,000
D. $867,000 correct answer $786,000
A mile contains 5,280 feet. The second tract contains 27,878,400 square feet
(5280 x 5280). 27,878,400÷43,560 (square feet in an acre) = 640 aces. 640+15 =
655 acres x $1,200 per acre = $786,000.
,A buyer's broker is showing a home with rooms that are difficult to measure and
which has a number of unusual angles. The buyer has indicated that the square
footage is a material fact to them in the purchase of a home. In attempting to
determine the square footage of the home using the NC Real Estate Commission
Residential Square Footage Guidelines, the broker may reasonably rely on which
of the following?
A. the detailed diagrams and measurements that are provided by the seller
B. the amount of square footage that the listing agent has indicated in the MLS
listing
C. the square footage that is reported in the public records at the county offices
D. the square footage from either an appraisal report or a survey that was
prepared in conjunction with a previous sale of the home correct answer the
amount of square footage that the listing agent has indicated in the MLS listing
A client receives $97,000 from the sale of his home after paying the broker a 6%
commission. What is the broker's commission?
A. $6,817.20
B. $6,191.48
C. $6,000.17
D. $5,820.65 correct answer $6,191.48
The seller's net of $97,000 represents 94% of the total (100%-6%). $97,000÷.94 =
$103,191.48 sales price x 6% commission = $6,191.48.
, A commercial property produces monthly rents of $28,000 and the building has
monthly net operating expenses of $18,000. The seller wants to list the building
for $2,500,000. What is the capitalization rate on this property?
A. 6%
B. 4.8%
C. 21%
D. 48% correct answer 4.8%
The gross income is $336,000 ($28,000 x 12). The operating expenses are
$216,000 ($18,000 x 12). $336,000-$216,000 = $120,000 net operating expenses
(NOI). $120,000÷$2,500,000 = .048 or a 4.8% capitalization rate.
A corporation owns several residential properties and has placed them into an
entity known as Prime Properties, LLC. The corporation is not licensed by the
North Carolina Real Estate Commission. None of the company's salaried
employees have real estate licenses. The LLC wants to sell several of its rental
properties. Which of the following is correct?
A. The LLC will have to hire a brokerage firm in order to sell or transfer these
properties in a real estate transaction.
B. The LLC may sell these properties using its own salaried employees. The LLC
may open a trust account or have the earnest money checks delivered directly to
the closing attorney.
C. The LLC may sell the properties, but they cannot collect any earnest money
from prospective buyers because they do not have an authorized NC Real Estate
Commission trust account.
D. The LLC and its managers are exempt from completing the Residential Property
Owners and correct answer The LLC may sell these properties using its own
salaried employee
