2
NC Post-Licensing 302 - Unit Test Questions with verified
|| || || || || || || || ||
detailed answers ||
In a real estate transaction, which of the following is an example of consideration? - ✔✔The
|| || || || || || || || || || || || || || ||
seller's promise to sell
|| || || ||
Your automatic check writer wrote a check for $51.50, but your printer ran out of toner, so
|| || || || || || || || || || || || || || || || ||
you had to fill in the handwritten line. In a hurry, you accidentally wrote, "Fifty-one dollars
|| || || || || || || || || || || || || || || ||
and no/100 cents." Which amount takes priority? - ✔✔The handwritten number
|| || || || || || || || || ||
Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of these
|| || || || || || || || || || || || || || || || ||
actions changes the contract from executory to executed? - ✔✔Dierks' lender funded the
|| || || || || || || || || || || || ||
loan, and closing took place || || || ||
_______ is an example of circumstances that are beyond the buyers' control, meaning they
|| || || || || || || || || || || || || ||
can't practically do what they've agreed to do, and the offer terminates. - ✔✔Destruction of
|| || || || || || || || || || || || || || ||
property
If a contract is for an illegal purpose, it's ______ - ✔✔Void
|| || || || || || || || || || ||
Which of the following is NOT a valid reason for an offer termination in North Carolina? -
|| || || || || || || || || || || || || || || || ||
✔✔Improper forms ||
Which offer would be the most appealing to a seller? - ✔✔It depends on the seller's needs
|| || || || || || || || || || || || || || || || ||
and motivations ||
Kirk and his cousin Dewey decided to buy a vacation home. They entered into a contract
|| || || || || || || || || || || || || || || ||
with the seller, Crystal. Before finalizing the sale, Dewey wanted out, but he doesn't want to
|| || || || || || || || || || || || || || || ||
let his cousin down. So instead of pulling out altogether, Dewey convinced his son to
|| || || || || || || || || || || || || || ||
,2
replace him in the purchase contract. Kirk and Crystal agreed to the substitution, and
|| || || || || || || || || || || || || ||
Dewey was released from all his obligations under the contract. Dewey's son is now the
|| || || || || || || || || || || || || || ||
contracting party. What's this an example of? - ✔✔Novation || || || || || || || ||
What type of language should be used to write contracts? - ✔✔Plain language
|| || || || || || || || || || || ||
When does offer and acceptance occur? - ✔✔When both parties sign a contract with the full
|| || || || || || || || || || || || || || ||
understanding of the terms.
|| || || ||
Sylvan, the seller, and Eric, the buyer, have signed an option agreement, which is an offer to
|| || || || || || || || || || || || || || || || ||
purchase a specific piece of real estate without the obligation to buy it. Until Eric exercises
|| || || || || || || || || || || || || || || ||
his option to buy, only Sylvan is bound by the option agreement; he may not sell the
|| || || || || || || || || || || || || || || || ||
property to anyone else during the option period. What type of contract is this? -
|| || || || || || || || || || || || || || ||
✔✔Unilateral
Three of these statements about interpreting contracts are true, and one is not. Which
|| || || || || || || || || || || || || ||
statement is FALSE? - ✔✔A handwritten insertion can be canceled out by typing over it.
|| || || || || || || || || || || || || ||
What is wrong with this statement: "Handwritten information on a contract is not legally
|| || || || || || || || || || || || || ||
binding. All insertions must be typed."? - ✔✔Insertions do not have to be typed to be legally
|| || || || || || || || || || || || || || || || ||
binding.
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for
|| || || || || || || || || || || || || ||
helping the Harpers list, market, and sell their home, the Harpers have agreed to pay
|| || || || || || || || || || || || || || ||
Desmond a commission. What type of agreement do Desmond and the Harpers have? -
|| || || || || || || || || || || || || ||
✔✔Bilateral
The Nettles have accepted the Briars' purchase offer, and both parties have signed the sales
|| || || || || || || || || || || || || || ||
contract. The funds, and the title, should transfer in a matter of days, but otherwise the all
|| || || || || || || || || || || || || || || || ||
elements and terms of the contract have been met. What type of contract do the Nettles and
|| || || || || || || || || || || || || || || || ||
the Briars have? - ✔✔Executory
|| || || ||
,2
Ruthie is explaining the termination option to her buyer client. How would she explain that
|| || || || || || || || || || || || || || ||
"time is of the essence" is for the discharge under operation of law option? - ✔✔"This means
|| || || || || || || || || || || || || || || ||
that if the seller doesn't decide by the deadline, the buyer is no longer held to the contract"
|| || || || || || || || || || || || || || || || || ||
Why do you think that handwritten changes take priority over typed changes? - ✔✔It's less
|| || || || || || || || || || || || || || ||
likely to be done inadvertently|| || || ||
Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected
|| || || || || || || || || || || || ||
that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and
|| || || || || || || || || || || || || || || || || ||
they added their signatures. Which of the following statements is correct? - ✔✔Breanna
|| || || || || || || || || || || || ||
accepted the offer Kathy made || || || ||
Rex needs to handle some money he acquired during an "unsavory" business deal. He
|| || || || || || || || || || || || || ||
agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and return
|| || || || || || || || || || || || || || || || || ||
it to Rex as part of a legal business dealing. What kind of contract do Rex and Ben have? -
|| || || || || || || || || || || || || || || || || || || ||
✔✔Void
Which of the following is a legitimate reason to counter an offer? - ✔✔Price
|| || || || || || || || || || || || ||
When a seller's agent receives a written offer from a prospective buyer, how must it be
|| || || || || || || || || || || || || || || ||
handled? - ✔✔It must be submitted promptly to the seller || || || || || || || || ||
Which of these sentences accurately lists rules for interpreting a contract? - ✔✔Typed text
|| || || || || || || || || || || || || ||
takes precedence over pre-printed text, and spelled-out numbers (e.g. four) take precedence
|| || || || || || || || || || || ||
over numerals (e.g. 5)
|| || ||
Zelda received an offer from Matthew for her house on Monday. The offer is set to expire
|| || || || || || || || || || || || || || || || ||
Wednesday. After a sleepless night on Monday, Matthew told his broker to revoke the offer. || || || || || || || || || || || || || || ||
, 2
Zelda hadn't accepted the offer as of Tuesday night. What happens to Matthew's offer? -
|| || || || || || || || || || || || || || ||
✔✔The offer is terminated under contract revocation laws
|| || || || || || ||
Kent has received an offer for his house. What is the best solution if there are some offer
|| || || || || || || || || || || || || || || || || ||
terms he's hesitant to accept? - ✔✔Reject the offer but reply with a form that outlines
|| || || || || || || || || || || || || || || ||
acceptable conditions ||
When does substantial performance of a contract occur? - ✔✔One party has met most but
|| || || || || || || || || || || || || || ||
not all of the terms specified in the contract, and may be required to pay damages for the
|| || || || || || || || || || || || || || || || || ||
terms not met || ||
Thad received multiple offers on his property and is reviewing them with his agent Nora.
|| || || || || || || || || || || || || || ||
All of the offers have at least one contingency. Nora recommends that they reject the second
|| || || || || || || || || || || || || || ||
offer, because it has a contingency that's generally the most risky. Which contingency is
|| || || || || || || || || || || || || || ||
that? - ✔✔Home sale
|| || ||
Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-
|| || || || || || || || || || || || || ||
offer. Kendra is now considering the counter. What role does Kendra currently have in this
|| || || || || || || || || || || || || || ||
scenario? - ✔✔Offeree || ||
What does the parol evidence rule say about contracts? - ✔✔The terms agreed to in a
|| || || || || || || || || || || || || || || ||
written contract are the only terms relating to that contract
|| || || || || || || || ||
Barney and Zack signed a sales contract. Zack changed the down payment amount from
|| || || || || || || || || || || || || ||
$2,000 to $5,000 using a software program. Barney then wrote $4,500 by hand on a printed
|| || || || || || || || || || || || || || || ||
copy and sent it back to Zack. What is the amount of the down payment since both parties
|| || || || || || || || || || || || || || || || || ||
have signed? - ✔✔$4,500
|| || ||
What is the definition of a legally competent party? - ✔✔Someone who has the legal and
|| || || || || || || || || || || || || || || ||
mental capacity to enter into a contract
|| || || || || ||
NC Post-Licensing 302 - Unit Test Questions with verified
|| || || || || || || || ||
detailed answers ||
In a real estate transaction, which of the following is an example of consideration? - ✔✔The
|| || || || || || || || || || || || || || ||
seller's promise to sell
|| || || ||
Your automatic check writer wrote a check for $51.50, but your printer ran out of toner, so
|| || || || || || || || || || || || || || || || ||
you had to fill in the handwritten line. In a hurry, you accidentally wrote, "Fifty-one dollars
|| || || || || || || || || || || || || || || ||
and no/100 cents." Which amount takes priority? - ✔✔The handwritten number
|| || || || || || || || || ||
Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of these
|| || || || || || || || || || || || || || || || ||
actions changes the contract from executory to executed? - ✔✔Dierks' lender funded the
|| || || || || || || || || || || || ||
loan, and closing took place || || || ||
_______ is an example of circumstances that are beyond the buyers' control, meaning they
|| || || || || || || || || || || || || ||
can't practically do what they've agreed to do, and the offer terminates. - ✔✔Destruction of
|| || || || || || || || || || || || || || ||
property
If a contract is for an illegal purpose, it's ______ - ✔✔Void
|| || || || || || || || || || ||
Which of the following is NOT a valid reason for an offer termination in North Carolina? -
|| || || || || || || || || || || || || || || || ||
✔✔Improper forms ||
Which offer would be the most appealing to a seller? - ✔✔It depends on the seller's needs
|| || || || || || || || || || || || || || || || ||
and motivations ||
Kirk and his cousin Dewey decided to buy a vacation home. They entered into a contract
|| || || || || || || || || || || || || || || ||
with the seller, Crystal. Before finalizing the sale, Dewey wanted out, but he doesn't want to
|| || || || || || || || || || || || || || || ||
let his cousin down. So instead of pulling out altogether, Dewey convinced his son to
|| || || || || || || || || || || || || || ||
,2
replace him in the purchase contract. Kirk and Crystal agreed to the substitution, and
|| || || || || || || || || || || || || ||
Dewey was released from all his obligations under the contract. Dewey's son is now the
|| || || || || || || || || || || || || || ||
contracting party. What's this an example of? - ✔✔Novation || || || || || || || ||
What type of language should be used to write contracts? - ✔✔Plain language
|| || || || || || || || || || || ||
When does offer and acceptance occur? - ✔✔When both parties sign a contract with the full
|| || || || || || || || || || || || || || ||
understanding of the terms.
|| || || ||
Sylvan, the seller, and Eric, the buyer, have signed an option agreement, which is an offer to
|| || || || || || || || || || || || || || || || ||
purchase a specific piece of real estate without the obligation to buy it. Until Eric exercises
|| || || || || || || || || || || || || || || ||
his option to buy, only Sylvan is bound by the option agreement; he may not sell the
|| || || || || || || || || || || || || || || || ||
property to anyone else during the option period. What type of contract is this? -
|| || || || || || || || || || || || || || ||
✔✔Unilateral
Three of these statements about interpreting contracts are true, and one is not. Which
|| || || || || || || || || || || || || ||
statement is FALSE? - ✔✔A handwritten insertion can be canceled out by typing over it.
|| || || || || || || || || || || || || ||
What is wrong with this statement: "Handwritten information on a contract is not legally
|| || || || || || || || || || || || || ||
binding. All insertions must be typed."? - ✔✔Insertions do not have to be typed to be legally
|| || || || || || || || || || || || || || || || ||
binding.
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for
|| || || || || || || || || || || || || ||
helping the Harpers list, market, and sell their home, the Harpers have agreed to pay
|| || || || || || || || || || || || || || ||
Desmond a commission. What type of agreement do Desmond and the Harpers have? -
|| || || || || || || || || || || || || ||
✔✔Bilateral
The Nettles have accepted the Briars' purchase offer, and both parties have signed the sales
|| || || || || || || || || || || || || || ||
contract. The funds, and the title, should transfer in a matter of days, but otherwise the all
|| || || || || || || || || || || || || || || || ||
elements and terms of the contract have been met. What type of contract do the Nettles and
|| || || || || || || || || || || || || || || || ||
the Briars have? - ✔✔Executory
|| || || ||
,2
Ruthie is explaining the termination option to her buyer client. How would she explain that
|| || || || || || || || || || || || || || ||
"time is of the essence" is for the discharge under operation of law option? - ✔✔"This means
|| || || || || || || || || || || || || || || ||
that if the seller doesn't decide by the deadline, the buyer is no longer held to the contract"
|| || || || || || || || || || || || || || || || || ||
Why do you think that handwritten changes take priority over typed changes? - ✔✔It's less
|| || || || || || || || || || || || || || ||
likely to be done inadvertently|| || || ||
Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected
|| || || || || || || || || || || || ||
that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and
|| || || || || || || || || || || || || || || || || ||
they added their signatures. Which of the following statements is correct? - ✔✔Breanna
|| || || || || || || || || || || || ||
accepted the offer Kathy made || || || ||
Rex needs to handle some money he acquired during an "unsavory" business deal. He
|| || || || || || || || || || || || || ||
agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and return
|| || || || || || || || || || || || || || || || || ||
it to Rex as part of a legal business dealing. What kind of contract do Rex and Ben have? -
|| || || || || || || || || || || || || || || || || || || ||
✔✔Void
Which of the following is a legitimate reason to counter an offer? - ✔✔Price
|| || || || || || || || || || || || ||
When a seller's agent receives a written offer from a prospective buyer, how must it be
|| || || || || || || || || || || || || || || ||
handled? - ✔✔It must be submitted promptly to the seller || || || || || || || || ||
Which of these sentences accurately lists rules for interpreting a contract? - ✔✔Typed text
|| || || || || || || || || || || || || ||
takes precedence over pre-printed text, and spelled-out numbers (e.g. four) take precedence
|| || || || || || || || || || || ||
over numerals (e.g. 5)
|| || ||
Zelda received an offer from Matthew for her house on Monday. The offer is set to expire
|| || || || || || || || || || || || || || || || ||
Wednesday. After a sleepless night on Monday, Matthew told his broker to revoke the offer. || || || || || || || || || || || || || || ||
, 2
Zelda hadn't accepted the offer as of Tuesday night. What happens to Matthew's offer? -
|| || || || || || || || || || || || || || ||
✔✔The offer is terminated under contract revocation laws
|| || || || || || ||
Kent has received an offer for his house. What is the best solution if there are some offer
|| || || || || || || || || || || || || || || || || ||
terms he's hesitant to accept? - ✔✔Reject the offer but reply with a form that outlines
|| || || || || || || || || || || || || || || ||
acceptable conditions ||
When does substantial performance of a contract occur? - ✔✔One party has met most but
|| || || || || || || || || || || || || || ||
not all of the terms specified in the contract, and may be required to pay damages for the
|| || || || || || || || || || || || || || || || || ||
terms not met || ||
Thad received multiple offers on his property and is reviewing them with his agent Nora.
|| || || || || || || || || || || || || || ||
All of the offers have at least one contingency. Nora recommends that they reject the second
|| || || || || || || || || || || || || || ||
offer, because it has a contingency that's generally the most risky. Which contingency is
|| || || || || || || || || || || || || || ||
that? - ✔✔Home sale
|| || ||
Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-
|| || || || || || || || || || || || || ||
offer. Kendra is now considering the counter. What role does Kendra currently have in this
|| || || || || || || || || || || || || || ||
scenario? - ✔✔Offeree || ||
What does the parol evidence rule say about contracts? - ✔✔The terms agreed to in a
|| || || || || || || || || || || || || || || ||
written contract are the only terms relating to that contract
|| || || || || || || || ||
Barney and Zack signed a sales contract. Zack changed the down payment amount from
|| || || || || || || || || || || || || ||
$2,000 to $5,000 using a software program. Barney then wrote $4,500 by hand on a printed
|| || || || || || || || || || || || || || || ||
copy and sent it back to Zack. What is the amount of the down payment since both parties
|| || || || || || || || || || || || || || || || || ||
have signed? - ✔✔$4,500
|| || ||
What is the definition of a legally competent party? - ✔✔Someone who has the legal and
|| || || || || || || || || || || || || || || ||
mental capacity to enter into a contract
|| || || || || ||
