NC REAL ESTATE EXAM- FASTPASS LEARNING
PT #2 QUESTIONS WITH 100% ACCURATE
ANSWERS
Fair Credit Reporting Act - Accurate answers Effective since 1970, the Fair Credit
Reporting Act provides borrowers with the right to check their credit reports and, if
errors are found, demand they be corrected by the credit reporting bureau. There are
three major credit bureaus - Equifax, Experian, and TransUnion. One free credit report
is required to be provided each year from each bureau per the Fair and Accurate Credit
Transaction Act (FACT Act).
Which of the following situations does not count as an accepted offer which has been
communicated to the client?
a. An accepted offer which has been signed and sent to the client via mail
b. An accepted offer which has been signed and sent to the client via email
c. An accepted offer which has been sent in writing to the buyer's agent
d. An accepted offer which has been postmarked prior to the expiration date, but does
not arrive to the buyer until two days later - Accurate answers c. An accepted
offer which has been sent in writing to the buyer's agent
REMEMBER, communication to the agent does not count as communication to the
party. It is imperative to deliver offers and acceptance immediately.
Which of the following statements about a short sale transaction is TRUE?
a. Seller's lienholder must forgive the seller for any shortfall
b. Sale proceeds are insufficient to pay off all liens secured by the property
c. The possibility of a short sale is not a material fact until a contract makes it a short
sale
d. Seller must bring additional funds to settlement to satisfy all liens secured by the
property - Accurate answers b. Sale proceeds are insufficient to pay off all liens
secured by the property
A short sale is one where the purchase price is insufficient to pay the remaining loan
balance of the property, closing costs, or some other expense that is expected to be
paid upon closing. The Short Sale Addendum allows the parties to terminate the OPC
contract in certain circumstances. It also requires the seller to disclose foreclosure
situations. Additionally, it establishes the lien-holder's authority to approve the
transaction and automatically adjusts the closing date and due diligence period
accordingly.
In a transaction featuring an installment land contract:
,a. The contract terms are generally more advantageous to the buyer
b. A buyer has the same rights as a buyer in a transaction featuring a deed of trust
c. The buyer will gain equitable title to the property after all payments have been made
d. 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 - Accurate answers
d. 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
An installment land contract is a sales contract and a financing document for owner-
financed purchases. The seller (also known as the vendor) retains legal title, while the
buyer, known as the vendee, secures possession of and an equitable interest in the
property. While the buyer obtains possession of the property when the contract is
signed by both parties, the seller does not execute and deliver a deed to the buyer until
the final payment has been made and all terms of the contract have been satisfied.
Which of the following provisions is not a part of the Standard Additional Provisions
Addendum (2A11-T)?
Septic System Installation/Modification
Rental/Income/Investment Property
Vacation Rental
Manufactured (Mobile) Home: - Accurate answers Vacation Rental
Additional Provisions Addendum - Accurate answers This addendum provides
additional provisions for five common situations. They are:
1) Expiration of Offer: Sets a date by which the seller must respond; otherwise the offer
expires.
2) Septic System Installation/Modification: Establishes the buyer's intention to obtain a
septic permit or inspection on the property.
3) Rental/Income/Investment Property: Requires the seller to disclose any existing
leases, rental terms, and statements of tenants' deposits. It also establishes that the
seller will forfeit any existing deposits at closing.
4) Manufactured (Mobile) Home: Discloses any manufactured homes on the property
and their VINs.
5) Pool/Spa Inspection: Establishes that the buyer may conduct or obtain an inspection
of any existing pools or spas on the property.
A broker affiliated with ABC Realty is working as a buyer's agent. On behalf of the
buyer- client, the broker submits an offer on a property listed by another firm. When the
listing agent presents the offer to the seller, the seller signs the offer with no changes.
The listing agent immediately calls the ABC Realty broker to relay the seller's
acceptance of the offer. The ABC Realty broker then promptly contacts the buyer with
the good news that the offer was accepted. Later that day, the listing agent delivers the
signed contract to the buyer's agent. The offer became an enforceable contract when
the:
a. Seller signed the offer with no changes
, b. Signed contract was delivered to the buyer's agent
c. Buyer's agent told the buyer of the seller's acceptance
d. Listing agent told the buyer's agent of the seller's acceptance - Accurate answers
c. Buyer's agent told the buyer of the seller's acceptance
To form a valid real estate sales contract, there must be an offer made, acceptance of
that offer, and communication of the acceptance to the other party (the Offeror). A
signed offer is not a contract until notice of acceptance by the last party is
communicated to the opposite party.
In which of the following Agreements for Preemptive Rights does the seller agree to
give a named party the right to match a third-party offer, if and only if the seller decides
to sell the property? - Accurate answers A Right of First Refusal
Right of First Refusal - Accurate answers An agreement in which the seller
agrees to sell to a named party first or give them the right to match a third-party offer, if
and only if the seller decides to sell the property.
Which of the following would create legally binding acceptance of a written offer?
The buyer submits a good faith deposit to the seller
A spouse signs for his/her spouse based on marital rights
The offeree's digital signature is shared electronically with the offeror
The buyer's agent emails the seller to inform the seller of the buyer's intent to accept the
offer - Accurate answers The offeree's digital signature is shared electronically
with the offeror
For an offer to become a binding contract, it must be communicated to and accepted by
the Offeree according to the exact terms and conditions as shown in the offer.
Acceptance of the offer occurs when the Offeree signs the offer without making any
changes to it. If any changes are made to the offer, a counteroffer will result, and no
acceptance has occurred.
How is Option Money (referred to as Consideration) handled in an Option Contract? -
Accurate answers It is held by the seller and is non-refundable
Buyer is under contract to buy a house using the standard 2-T Offer to Purchase and
Contract form jointly approved by the North Carolina Association of REALTORS® and
the North Carolina Bar Association. During the Due Diligence Period, Buyer may:
a. Terminate the contract after Seller has agreed to complete all of Buyer's repair
requests
b. Terminate the contract and receive a refund of the Due Diligence Fee and the
Earnest Money Deposit
c. Require Seller to extend the Period if Buyer's lender needs more time to complete the
financing approval process
PT #2 QUESTIONS WITH 100% ACCURATE
ANSWERS
Fair Credit Reporting Act - Accurate answers Effective since 1970, the Fair Credit
Reporting Act provides borrowers with the right to check their credit reports and, if
errors are found, demand they be corrected by the credit reporting bureau. There are
three major credit bureaus - Equifax, Experian, and TransUnion. One free credit report
is required to be provided each year from each bureau per the Fair and Accurate Credit
Transaction Act (FACT Act).
Which of the following situations does not count as an accepted offer which has been
communicated to the client?
a. An accepted offer which has been signed and sent to the client via mail
b. An accepted offer which has been signed and sent to the client via email
c. An accepted offer which has been sent in writing to the buyer's agent
d. An accepted offer which has been postmarked prior to the expiration date, but does
not arrive to the buyer until two days later - Accurate answers c. An accepted
offer which has been sent in writing to the buyer's agent
REMEMBER, communication to the agent does not count as communication to the
party. It is imperative to deliver offers and acceptance immediately.
Which of the following statements about a short sale transaction is TRUE?
a. Seller's lienholder must forgive the seller for any shortfall
b. Sale proceeds are insufficient to pay off all liens secured by the property
c. The possibility of a short sale is not a material fact until a contract makes it a short
sale
d. Seller must bring additional funds to settlement to satisfy all liens secured by the
property - Accurate answers b. Sale proceeds are insufficient to pay off all liens
secured by the property
A short sale is one where the purchase price is insufficient to pay the remaining loan
balance of the property, closing costs, or some other expense that is expected to be
paid upon closing. The Short Sale Addendum allows the parties to terminate the OPC
contract in certain circumstances. It also requires the seller to disclose foreclosure
situations. Additionally, it establishes the lien-holder's authority to approve the
transaction and automatically adjusts the closing date and due diligence period
accordingly.
In a transaction featuring an installment land contract:
,a. The contract terms are generally more advantageous to the buyer
b. A buyer has the same rights as a buyer in a transaction featuring a deed of trust
c. The buyer will gain equitable title to the property after all payments have been made
d. 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 - Accurate answers
d. 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
An installment land contract is a sales contract and a financing document for owner-
financed purchases. The seller (also known as the vendor) retains legal title, while the
buyer, known as the vendee, secures possession of and an equitable interest in the
property. While the buyer obtains possession of the property when the contract is
signed by both parties, the seller does not execute and deliver a deed to the buyer until
the final payment has been made and all terms of the contract have been satisfied.
Which of the following provisions is not a part of the Standard Additional Provisions
Addendum (2A11-T)?
Septic System Installation/Modification
Rental/Income/Investment Property
Vacation Rental
Manufactured (Mobile) Home: - Accurate answers Vacation Rental
Additional Provisions Addendum - Accurate answers This addendum provides
additional provisions for five common situations. They are:
1) Expiration of Offer: Sets a date by which the seller must respond; otherwise the offer
expires.
2) Septic System Installation/Modification: Establishes the buyer's intention to obtain a
septic permit or inspection on the property.
3) Rental/Income/Investment Property: Requires the seller to disclose any existing
leases, rental terms, and statements of tenants' deposits. It also establishes that the
seller will forfeit any existing deposits at closing.
4) Manufactured (Mobile) Home: Discloses any manufactured homes on the property
and their VINs.
5) Pool/Spa Inspection: Establishes that the buyer may conduct or obtain an inspection
of any existing pools or spas on the property.
A broker affiliated with ABC Realty is working as a buyer's agent. On behalf of the
buyer- client, the broker submits an offer on a property listed by another firm. When the
listing agent presents the offer to the seller, the seller signs the offer with no changes.
The listing agent immediately calls the ABC Realty broker to relay the seller's
acceptance of the offer. The ABC Realty broker then promptly contacts the buyer with
the good news that the offer was accepted. Later that day, the listing agent delivers the
signed contract to the buyer's agent. The offer became an enforceable contract when
the:
a. Seller signed the offer with no changes
, b. Signed contract was delivered to the buyer's agent
c. Buyer's agent told the buyer of the seller's acceptance
d. Listing agent told the buyer's agent of the seller's acceptance - Accurate answers
c. Buyer's agent told the buyer of the seller's acceptance
To form a valid real estate sales contract, there must be an offer made, acceptance of
that offer, and communication of the acceptance to the other party (the Offeror). A
signed offer is not a contract until notice of acceptance by the last party is
communicated to the opposite party.
In which of the following Agreements for Preemptive Rights does the seller agree to
give a named party the right to match a third-party offer, if and only if the seller decides
to sell the property? - Accurate answers A Right of First Refusal
Right of First Refusal - Accurate answers An agreement in which the seller
agrees to sell to a named party first or give them the right to match a third-party offer, if
and only if the seller decides to sell the property.
Which of the following would create legally binding acceptance of a written offer?
The buyer submits a good faith deposit to the seller
A spouse signs for his/her spouse based on marital rights
The offeree's digital signature is shared electronically with the offeror
The buyer's agent emails the seller to inform the seller of the buyer's intent to accept the
offer - Accurate answers The offeree's digital signature is shared electronically
with the offeror
For an offer to become a binding contract, it must be communicated to and accepted by
the Offeree according to the exact terms and conditions as shown in the offer.
Acceptance of the offer occurs when the Offeree signs the offer without making any
changes to it. If any changes are made to the offer, a counteroffer will result, and no
acceptance has occurred.
How is Option Money (referred to as Consideration) handled in an Option Contract? -
Accurate answers It is held by the seller and is non-refundable
Buyer is under contract to buy a house using the standard 2-T Offer to Purchase and
Contract form jointly approved by the North Carolina Association of REALTORS® and
the North Carolina Bar Association. During the Due Diligence Period, Buyer may:
a. Terminate the contract after Seller has agreed to complete all of Buyer's repair
requests
b. Terminate the contract and receive a refund of the Due Diligence Fee and the
Earnest Money Deposit
c. Require Seller to extend the Period if Buyer's lender needs more time to complete the
financing approval process
