NC Post-Licensing 302 - Unit Test
Questions with 100% correct answers
In a real estate transaction, which of the following is an example of consideration? - answer
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? - answer 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? - answer 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. - answer
Destruction of property
If a contract is for an illegal purpose, it's ______ - answer Void
Which of the following is NOT a valid reason for an offer termination in North Carolina? -
answer Improper forms
Which offer would be the most appealing to a seller? - answer 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
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? - answer Novation
,What type of language should be used to write contracts? - answer Plain language
When does offer and acceptance occur? - answer 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? - answer
Unilateral
Three of these statements about interpreting contracts are true, and one is not. Which
statement is FALSE? - answer 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."? - answer 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? -
answer 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? - answer Executory
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? - answer
"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? - answer
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? -
answer 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? - answer
Void
Which of the following is a legitimate reason to counter an offer? - answer Price
When a seller's agent receives a written offer from a prospective buyer, how must it be
handled? - answer It must be submitted promptly to the seller
Which of these sentences accurately lists rules for interpreting a contract? - answer 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. Zelda hadn't accepted the offer as of Tuesday night. What happens to Matthew's
offer? - answer 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? - answer Reject the offer but reply with a form that outlines
acceptable conditions
When does substantial performance of a contract occur? - answer 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? - answer 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? - answer Offeree
What does the parol evidence rule say about contracts? - answer 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? - answer $4,500
What is the definition of a legally competent party? - answer Someone who has the legal
and mental capacity to enter into a contract
Which party is bound by a bilateral contract? - answer Both the seller and the buyer
Which of the following is a good rule of thumb regarding multiple offers? - answer Make
sure to consider all the terms of each offer
You've reviewed an offer with your seller client. The offer is pretty good, and the seller
finds most of the terms agreeable but wants to counter on the price. What's your next step
after working up a counter-offer? - answer Submit it promptly to the buyer's agent
All terms and conditions the client authorizes must be specified and included in an offer to
sell or buy. When is it acceptable to offer the property under other terms? - answer never
Questions with 100% correct answers
In a real estate transaction, which of the following is an example of consideration? - answer
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? - answer 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? - answer 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. - answer
Destruction of property
If a contract is for an illegal purpose, it's ______ - answer Void
Which of the following is NOT a valid reason for an offer termination in North Carolina? -
answer Improper forms
Which offer would be the most appealing to a seller? - answer 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
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? - answer Novation
,What type of language should be used to write contracts? - answer Plain language
When does offer and acceptance occur? - answer 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? - answer
Unilateral
Three of these statements about interpreting contracts are true, and one is not. Which
statement is FALSE? - answer 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."? - answer 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? -
answer 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? - answer Executory
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? - answer
"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? - answer
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? -
answer 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? - answer
Void
Which of the following is a legitimate reason to counter an offer? - answer Price
When a seller's agent receives a written offer from a prospective buyer, how must it be
handled? - answer It must be submitted promptly to the seller
Which of these sentences accurately lists rules for interpreting a contract? - answer 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. Zelda hadn't accepted the offer as of Tuesday night. What happens to Matthew's
offer? - answer 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? - answer Reject the offer but reply with a form that outlines
acceptable conditions
When does substantial performance of a contract occur? - answer 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? - answer 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? - answer Offeree
What does the parol evidence rule say about contracts? - answer 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? - answer $4,500
What is the definition of a legally competent party? - answer Someone who has the legal
and mental capacity to enter into a contract
Which party is bound by a bilateral contract? - answer Both the seller and the buyer
Which of the following is a good rule of thumb regarding multiple offers? - answer Make
sure to consider all the terms of each offer
You've reviewed an offer with your seller client. The offer is pretty good, and the seller
finds most of the terms agreeable but wants to counter on the price. What's your next step
after working up a counter-offer? - answer Submit it promptly to the buyer's agent
All terms and conditions the client authorizes must be specified and included in an offer to
sell or buy. When is it acceptable to offer the property under other terms? - answer never
