SUPERIOR SCHOOL OF REAL ESTATE FINAL EXAM QUESTIONS AND ANSWERS WITH 100% COMPLETE SOLUTIONS | VERIFIED & UPDATED | GRADED A+

SUPERIOR SCHOOL OF REAL ESTATE FINAL EXAM QUESTIONS AND ANSWERS WITH 100% COMPLETE SOLUTIONS | VERIFIED & UPDATED | GRADED A+ Which of the following would create legally binding acceptance of a written offer? - CORRECT ANS>>The seller's agent emails the buyer's agent that the seller signed the offer as written. A broker is preparing a comparative market analysis (CMA) for a subject property with 3200 square feet. A comparable property has 2750 square feet. The estimated value of 450 additional square feet is $22,500. The broker should... - CORRECT ANS>>Add $22,500 to the sales price of the comparable property. An option to purchase has been created for a one hundred acre parcel of farmland. During the one-year option period, the option he has the right to... - CORRECT ANS>>Execute the option to purchase on the terms in the option agreement. A buyer is under contract to purchase a home for $370,000 and has qualified for an 80% loan-to-value mortgage loan at an annual interest rate of 45%. How much will the buyer owe for the 1% loan origination fee and 1 1/2 discount points associated with this loan package? - CORRECT ANS>>$7,400 The buyer and the seller in a failed transaction cannot agree on how to disburse the earnest money deposit being held in the listing firm's trust account. The listing firm must retain the records of this transaction for 3 years after the... - CORRECT ANS>>Date the earnest money is disbursed. Which of the following is an example of personal property that could typically be removed by the seller of a residential property? - CORRECT ANS>>A tree house constructed in a tree on the property that can be removed without damage to the tree. Which of the following properties would be the best comparable for an appraiser to use for an appraisal of a two-story subject property with 3 bedrooms and 2 baths in a subdivision near the downtown area of a city? - CORRECT ANS>>3 bedrooms, 2 baths two-story house in a nearby similar subdivision. Which of the following is a legal property management practice under the Federal Fair Housing Act as amended in 1998? - CORRECT ANS>>Requiring a credit report and a criminal background check for all applicants. How and when must a broker notify an unrepresented buyer that the broker represents the seller? - CORRECT ANS>>In writing, before obtaining any personal information from the buyer. Excise tax on real property in North Carolina is... - CORRECT ANS>>$1per$500 Which of the following scenarios best illustrates first substantial contact? - CORRECT ANS>>Seller states that she must relocate by the end of the year. Liens, restrictive covenants, easements, and encroachments are all examples of... - CORRECT ANS>> Encumbrances. A detached workshop extends over the property line onto the neighboring lot by six inches. This legally constitutes as a (an)... - CORRECT ANS>>Encroachment. A North Carolina broker is required to deliver all executed contracts to his/her clients no later than... - CORRECT ANS>>Three days after receipt by the broker. A buyer who is Muslim instructs the broker to show the buyer properties that are located in neighborhoods that have a higher number of Muslim residents. If the broker complies with this client's instructions the broker will be in... - CORRECT ANS>>Compliance with the Civil Rights Act of 1866, but in violation of the Federal Fair Housing Act. Which of the following statements regarding the TILA-RESPA Integrated Disclosure (TRID) requirements is true? - CORRECT ANS>>Within three days of receiving a loan application, the lender must provide the applicant with a loan estimate. A house located within the city limits has a current market value of $485,000 according to a recent appraisal. The assessed value from the last county-wide tax valuation is $412,250. The tax rate is $.92 per hundred for the county and $.34 per hundred for the city. What is the total annual property tax liability on the property, rounded to the nearest dollar? - CORRECT ANS>>$5,194 Which of the following situations would be considered a material fact in North Carolina? - CORRECT ANS>>The seller has been served with a foreclosure notice. The fiduciary duties of an exclusive buyer's agent include... - CORRECT ANS>>Concealing clients confidential information. A title insurance policy... - CORRECT ANS>>Protects the purchaser and/or the lender against loss due to an existing covered title defect that was undiscovered when the policy became effective. Regulation Z on the Truth-In-Lending Act requires that lenders... - CORRECT ANS>>Disclose mortgage loan finance charges and interest rate to borrowers. Which of the following statements about deeds is true? - CORRECT ANS>>A special warranty deed contains a promise that the grantor will convey title on the property without any encumbrances. Under the North Carolina Residential Rental Agreements Act, - CORRECT ANS>> Tentantcanusewithheldpaymentofrenttopayforrequiredrepairs According to the applicable provision in the standard Offer to Purchase and Contract form jointly approved by the North Carolina Association of Realtors and the North Carolina Bar Association, what happens if buyer is unable to secure the financing described in the contract? - CORRECT ANS>>If this information is discovered during the due diligence period, buyer may terminate the contract and receive a refund of any earnest money deposit. The recordation of a deed to real property is required... - CORRECT ANS>>To transfer the title from the seller to the buyer. In North Carolina, which of the following persons must have an active real estate broker license in order to earn compensation? - CORRECT ANS>>A corporate builders salaried employee selling homes owned by the corporation. In a transaction featuring an installment land contract... - CORRECT ANS>>A buyer who defaults on payments may lose all rights to the property as well as all previous payments made toward the purchase of the property. If a North Carolina broker acting as an agent in a real estate transaction used a pre-printed offer or sales contract form, it must... - CORRECT ANS>>Be the standard form approved by the North Carolina Association of Realtors and the North Carolina Bar Association. Which of the following statements about townhouses in North Carolina is true? - CORRECT ANS>>The homeowners association owns the common areas of a townhouse complex. The grantor promises to warrant and defend the title conveyed against any claims and demands of all persons since the beginning of time with a... - CORRECT ANS>>General warranty deed. Which of the following statements best defines a real estate appraisal? - CORRECT ANS>> A typical property management agreement will specify the... - CORRECT ANS>>Formula used to calculate the management fee. The working with real estate agents brochure... - CORRECT ANS>>Must be reviewed with consumers in all real estate transactions. Which of the following is an example of economic obsolescence for a residence? - CORRECT ANS>> Located near a waste management facility. A written listing agreement will be automatically terminated if the... - CORRECT ANS>>Sole practitioner broker that signed the agency agreement dies. A property management agreement typically authorizes a broker to... - CORRECT ANS>>List the property for sale on behalf of the property owner. Which of the following environmental statements is true? - CORRECT ANS>>The presence of any mold in a residential property must be disclosed. Which of the following statements about a listing agreement is true? - CORRECT ANS>>It creates a fiduciary relationship between the seller and the listing firm. A state law that requires contracts conveying interest in real property to be in writing in order to be enforceable is called the... - CORRECT ANS>>Statue of Frauds. Which of the following statements about a provisional broker (PB) is true? - CORRECT ANS>>The PB and his/her supervising broker-in-charge are subject to disciplinary action for any actions of the PB that are in violation of Commission rules. Under a net lease, the tenant pays for a base monthly rent plus... - CORRECT ANS>>Some are all of the property expenses such as maintenance, taxes, and insurance. Which of the following statements about hybrid ownership is true? - CORRECT ANS>>In timeshare ownership, individuals have a limited use of a commonly owned unit. A buyer's agent will keep 65% of her firms earn commission split. The sales price of the property is $876,000. If the listing firm is offering a 50/50 split of the 5.5% commission to the selling firm how much will the buyers agent receive? - CORRECT ANS>>$15,658. A house has a finished bonus room above the garage that is only accessible through an unheated garage. The room is heated by a portable space heater and cooled by a window air conditioner unit. Which of the following statements is true? - CORRECT ANS>>The bonus room does not meet the criteria for living area, because it is not adequately heated. A dual agent may disclose which of the following information to one of the agent's principals without the permission of the other client? - CORRECT ANS>>The fact that the property in question is being re- zoned Which of the following statements regarding adjustable rate mortgage loans is TRUE? - CORRECT ANS>> The interest rate may be adjusted based on a published index. In North Carolina, which of the following statements regarding tenant security deposits is TRUE? - CORRECT ANS>>The Broker or landlord must account for the tentant security deposit in writing within 30 days.. An exclusive buyer's agency agreement with a firm will be automatically terminated if the - CORRECT ANS>>buyer and the firm agree to stop working together. A real estate broker may legally and ethically solicit business from property owners on the Do-Not-Call Registry by - CORRECT ANS>>Calling a FSBO Which of the following statements BEST describes the relationship between the primary and secondary mortgage markets? - CORRECT ANS>>The primary mortgage market is made up of lenders that originate mortgage loans, and the secondary mortgage market provides.. originating loans. After hours of negotiating, a buyer and a seller reach an oral agreement on the terms for the purchase of the seller's home. The buyer submits a written offer with the terms of the oral agreement. Before the seller has a chance to sign the written offer, the seller dies of a heart attack. Which of the following statements is TRUE? - CORRECT ANS>>The buyer's offer is terminated, because the seller did not sign the offer. Which of the following statements in a broker's advertisement for real property would be compliant with Regulation Z requirements? - CORRECT ANS>>"Seller will pay $1000 toward a buyer's closing costs" In a North Carolina firm that practices dual agency, but not designated agency, a broker may disclose confidential information about a seller-client to - CORRECT ANS>>no one A buyer agent must disclose to the seller or the seller's agent that the broker represents the buyer - CORRECT ANS>>at the buyer agent's initial contact with the seller or seller's agent. A buyer has contracted to purchase a home for $275,000. The buyer paid a $4,000 earnest money deposit and the sale will close on March 30. The buyer has already received loan approval for an 80% loan-to-value conventional loan. The lender is charging the borrower a 1% loan origination fee and ½ discount point. The lender is requiring the borrower to deposit 7 months of real property taxes and 2 months of homeowner insurance premium into an escrow account at settlement. The homeowner insurance premium for the first year is $864 and is to be paid at settlement. Real property taxes for the year total $3635 and have not been paid for the current year. For prorations, use a 30-day month/360-day year and assume the seller owns the day of settlement. Additional closing expenses for the buyer total $1500. What is the net amount that the buyer will owe at settlement, rounded to the nearest dollar? - CORRECT ANS>>59,837 A commercial lot in the city is located in the middle of an area zoned for office use only. City zoning requirements limit construction to one story in height and dictate a minimum number of parking spaces based on the square footage of an office building. The property owner wishes to build an office building on the lot. Due to the irregular shape of the lot and the presence of a city utility easement across the owner's property, less than half of the required parking spaces will fit on the property. The property owner realizes that the required parking spaces could be created by constructing offices over a one-story parking garage. The property owner should petition the city for a - CORRECT ANS>>variance A listing agreement generally includes - CORRECT ANS>>an automatic termination date. Which of the following statements concerning broker compensation in North Carolina is TRUE? - CORRECT ANS>>Compensation to a broker from a settlement service provider in the transaction is probably in violation of RESPA. A North Carolina broker specializing in property management may employ an unlicensed assistant to legally perform which of the following services? - CORRECT ANS>>Show properties managed by the broker to prospective tenants. A broker engaging in property management is generally tasked by the property owner with - CORRECT ANS>>instituting legal actions against tenants.