NC Real Estate Exam Study Guide
Questions with Accurate Answers
2 story homes correct answer Traditional, popular, extra space for growing
families
2 types of estates correct answer Freehold and leasehold
2 types of fee simple estates correct answer Absolute and defeasible
2 types of freehold estates correct answer Fee simple and life estates
2 types of life estates correct answer Conventional and legal
3 primary features of trust/escrow accounts correct answer Separate - contains
only monies from that transaction
Custodial - only the broker has access to the account
Available on demand - funds can be withdrawn at any time without prior notice
30-day 12-month proration correct answer Monthly amount - annual amount/12
Daily amount - monthly amount/30
Proration - (monthly amount x number of months) + (daily amount x number of
days)
365-day method proration correct answer Daily amount - annual amount/365 OR
monthly amount/# of days in month
,Proration - daily amount x number of days
4 basic home types correct answer 1. One-story
2. 1.5 story
3. Two-story
4. Split level
4 types of leasehold estates correct answer Estate for years
Periodic
Estate at will
Estate at sufferance
4 utilities required for joint tenancy? (PITT_ correct answer Time, title, interest,
possession
Above grade correct answer Space at or on grade
Space on any level with living area and not adjacent to earth
Absolute fee simple estate correct answer Highest form of ownership interest
Acceleration correct answer Requirement to repay loan before scheduled due
date
Acceptance requirements correct answer Signed and preferably dated
,Acquisition debt correct answer Debt incurred in purchase of personal residence
Activities exempt from licensing requirement correct answer 1. Owners/lessors
2. Attorney-in-fact
3. Receiver, trustee, guardian, administrator, executor, person acting under court
order
4. Attorney who is a member of the NC state bar
5. Salaried employee of broker
6. Business entity
Actual eviction/summary ejectment correct answer Eviction due to lessee failing
to follow lease conditions
Actual notice correct answer Knowledge acquired directly through demonstrable
evidence
Ad valorem correct answer According to value
Adjustable loans correct answer Interest rate fluctuates with index and payments
can vary too
Adjusted basis correct answer Beginning basis + improvements - total
depreciation
Advantages of a concrete slab instead of a foundation wall? correct answer Less
expensive
, Affixing correct answer Converting personal property to real property
Air quality act/clean air act correct answer Regulates air quality standards
1967, 70
Alienation clause/due-on-sale clause correct answer Lender can demand
immediate loan repayment if borrower sells property without lender's approval
Allowed activities of unlicensed, salaried employee correct answer 1.
Receive/forward calls and messages to broker
2. Submit listings/changes compiled by broker to MLS
3. Get public records
4. Place for sale signs and lock boxes on property
5. Deliver and pick up documents
6. Give basic info to prospective buyers
7. Coordinate and confirm appointments
8. Show rental properties and fill out leases
9. Type offers, contracts, and leases that are preprinted
10. Record and deposit earnest money
11. Help assemble closing documents
12. Give commission checks
Amortized loan correct answer Payments include increasing increments of
principal
Questions with Accurate Answers
2 story homes correct answer Traditional, popular, extra space for growing
families
2 types of estates correct answer Freehold and leasehold
2 types of fee simple estates correct answer Absolute and defeasible
2 types of freehold estates correct answer Fee simple and life estates
2 types of life estates correct answer Conventional and legal
3 primary features of trust/escrow accounts correct answer Separate - contains
only monies from that transaction
Custodial - only the broker has access to the account
Available on demand - funds can be withdrawn at any time without prior notice
30-day 12-month proration correct answer Monthly amount - annual amount/12
Daily amount - monthly amount/30
Proration - (monthly amount x number of months) + (daily amount x number of
days)
365-day method proration correct answer Daily amount - annual amount/365 OR
monthly amount/# of days in month
,Proration - daily amount x number of days
4 basic home types correct answer 1. One-story
2. 1.5 story
3. Two-story
4. Split level
4 types of leasehold estates correct answer Estate for years
Periodic
Estate at will
Estate at sufferance
4 utilities required for joint tenancy? (PITT_ correct answer Time, title, interest,
possession
Above grade correct answer Space at or on grade
Space on any level with living area and not adjacent to earth
Absolute fee simple estate correct answer Highest form of ownership interest
Acceleration correct answer Requirement to repay loan before scheduled due
date
Acceptance requirements correct answer Signed and preferably dated
,Acquisition debt correct answer Debt incurred in purchase of personal residence
Activities exempt from licensing requirement correct answer 1. Owners/lessors
2. Attorney-in-fact
3. Receiver, trustee, guardian, administrator, executor, person acting under court
order
4. Attorney who is a member of the NC state bar
5. Salaried employee of broker
6. Business entity
Actual eviction/summary ejectment correct answer Eviction due to lessee failing
to follow lease conditions
Actual notice correct answer Knowledge acquired directly through demonstrable
evidence
Ad valorem correct answer According to value
Adjustable loans correct answer Interest rate fluctuates with index and payments
can vary too
Adjusted basis correct answer Beginning basis + improvements - total
depreciation
Advantages of a concrete slab instead of a foundation wall? correct answer Less
expensive
, Affixing correct answer Converting personal property to real property
Air quality act/clean air act correct answer Regulates air quality standards
1967, 70
Alienation clause/due-on-sale clause correct answer Lender can demand
immediate loan repayment if borrower sells property without lender's approval
Allowed activities of unlicensed, salaried employee correct answer 1.
Receive/forward calls and messages to broker
2. Submit listings/changes compiled by broker to MLS
3. Get public records
4. Place for sale signs and lock boxes on property
5. Deliver and pick up documents
6. Give basic info to prospective buyers
7. Coordinate and confirm appointments
8. Show rental properties and fill out leases
9. Type offers, contracts, and leases that are preprinted
10. Record and deposit earnest money
11. Help assemble closing documents
12. Give commission checks
Amortized loan correct answer Payments include increasing increments of
principal
