NC 302 POST LICENSING COMPREHENSIVE EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Costs & Fees the Seller Pays: - ✔✔Commission
Deed preparation
Mortgage payoff
Lien release recording
Excise tax
NC charges a transfer tax on real estate
$1 for each $500 of value
Round up to the nearest $500
Divide by $500
Always will be an even dollar number (no change)
$195,700 sales price
$196,000 divided by $500 = $392 excise tax
Unpaid or double debit taxes
✔✔Cost & Fees that the buyer pays: - ✔✔Loan origination fees
Discount point
Interest on loan
Mortgage insurance
Homeowner's insurance
Reserves deposited with lender
Closing attorney fees
Title insurance premium
Recording of mortgage lien
surveys/inspections
Courier fees
✔✔Some fees may be POC (Paid outside of closing) - ✔✔STILL needs to show up on
the CD even though it hasn't yet been paid but NEVER collected/debited
✔✔Mortgage interest paid in arrears: - ✔✔Closing → loan interest collected at closing
→ First payment due one month later
✔✔Items paid in advance & Reserves deposited with lender - ✔✔Homeowner's
insurance: 1 year + months
Mortgage insurance: upfront + x months
Real estate taxes
Annual insurance bill
Annual mortgage insurance premium
Annual real estate tax bill
✔✔Seller paid buyer loan costs - ✔✔The costs are still charged to the buyer on the 1st
page (they are still buyer loan costs)
,On the 2nd page: the seller will be debited this amount and the buyer will receive a
credit
✔✔Brokerage retention of earnest money as commission - ✔✔The brokerage may
retain the EM and credit it towards the commission
✔✔The new owners MUST honor existing leases, leases travel with the property (not
the owner) - ✔✔Exception: vacation rentals
✔✔Prorating rents - ✔✔The buyer must GET A CREDIT FOR THE TIME THAT THEY
WILL OWN THE PROPERTY (USE A 360 DAY CALENDAR)
✔✔Closing Disclosure Tips: - ✔✔Interest for buyer's loan - buyer has to pay for the day
of closing
Property taxes - seller has to pay for the day of closing
Total due from borrower at closing: purchase price plus closing costs
Total paid already by or on behalf of borrower: all of the items in L -- add them together
Subtract the two! (p. 177 of adventure guide)
✔✔Commission Earned vs. Received - ✔✔Earned -> Procure a contract
Received -> Fees paid
✔✔Contract - ✔✔Deliberate agreement between 2 or more competent parties
supported by legal consideration to perform or abstain from performing some act.
OR
A promise or a set of promises which the law will enforce
✔✔Essential Elements of a contract - - meeting of the minds
CLAP - ✔✔consideration -- mutual exchange of anything of value (purchase price)
legal act
agree mutually
parties competent
✔✔Illegal purchase - ✔✔Capacity -- lacking legal mental capacity/drunk
Contracts with children are legal
Competent people with capacity are bound
For legal capacity questions, consult an attorney
Person who lacks capacity has ability to make the contract voidable, NOT the
competent party
✔✔Handling of EM deposit - ✔✔Deposited to a trust or escrow account no later than 3
banking days
, ✔✔Broker may transfer EM from his escrow to attorney's no more than ____ days prior
to the anticipated settlement date - ✔✔10
✔✔If license becomes inactive or expired, it is okay to still receive a commission so long
as - ✔✔the license was active at the time it was earned
✔✔Parole evidence rule - ✔✔addenda overrules contract
✔✔Consideration - ✔✔Anything of value can be bartered
✔✔MOG - ✔✔Proved property
Vacant land
MOG does NOT need to be provided by owner's of unimproved property
✔✔What does attorney need? - ✔✔Seller's deed
HOA info
Seller's title info
Contract
All bills to be paid at closing
✔✔There is a contract even if DD fee is not paid - ✔✔They go to court to solve the
dispute
✔✔You have a contract when _____ - ✔✔acceptance has been communicated
✔✔EMD can be written to who? - ✔✔Buyer's firm, listing firm, attorney
✔✔Void - ✔✔a contract that lacks an element/never existed
✔✔Voidable - ✔✔Usually based on a lack of capacity
✔✔Role of closing attorney - ✔✔Coordinate the process
Issues validity of title opinions
Prepares closing documents
Conducts closing
Usually selected and paid for by buyer
✔✔If licensee has doubts about legal capacity --> - ✔✔consult an attorney
✔✔Pre-licensing for NC - ✔✔75 hours
✔✔Delay of Settlement: - ✔✔NOT "Time of the essence"
Relies on multiple entities
QUESTIONS AND ANSWERS SURE A+
✔✔Costs & Fees the Seller Pays: - ✔✔Commission
Deed preparation
Mortgage payoff
Lien release recording
Excise tax
NC charges a transfer tax on real estate
$1 for each $500 of value
Round up to the nearest $500
Divide by $500
Always will be an even dollar number (no change)
$195,700 sales price
$196,000 divided by $500 = $392 excise tax
Unpaid or double debit taxes
✔✔Cost & Fees that the buyer pays: - ✔✔Loan origination fees
Discount point
Interest on loan
Mortgage insurance
Homeowner's insurance
Reserves deposited with lender
Closing attorney fees
Title insurance premium
Recording of mortgage lien
surveys/inspections
Courier fees
✔✔Some fees may be POC (Paid outside of closing) - ✔✔STILL needs to show up on
the CD even though it hasn't yet been paid but NEVER collected/debited
✔✔Mortgage interest paid in arrears: - ✔✔Closing → loan interest collected at closing
→ First payment due one month later
✔✔Items paid in advance & Reserves deposited with lender - ✔✔Homeowner's
insurance: 1 year + months
Mortgage insurance: upfront + x months
Real estate taxes
Annual insurance bill
Annual mortgage insurance premium
Annual real estate tax bill
✔✔Seller paid buyer loan costs - ✔✔The costs are still charged to the buyer on the 1st
page (they are still buyer loan costs)
,On the 2nd page: the seller will be debited this amount and the buyer will receive a
credit
✔✔Brokerage retention of earnest money as commission - ✔✔The brokerage may
retain the EM and credit it towards the commission
✔✔The new owners MUST honor existing leases, leases travel with the property (not
the owner) - ✔✔Exception: vacation rentals
✔✔Prorating rents - ✔✔The buyer must GET A CREDIT FOR THE TIME THAT THEY
WILL OWN THE PROPERTY (USE A 360 DAY CALENDAR)
✔✔Closing Disclosure Tips: - ✔✔Interest for buyer's loan - buyer has to pay for the day
of closing
Property taxes - seller has to pay for the day of closing
Total due from borrower at closing: purchase price plus closing costs
Total paid already by or on behalf of borrower: all of the items in L -- add them together
Subtract the two! (p. 177 of adventure guide)
✔✔Commission Earned vs. Received - ✔✔Earned -> Procure a contract
Received -> Fees paid
✔✔Contract - ✔✔Deliberate agreement between 2 or more competent parties
supported by legal consideration to perform or abstain from performing some act.
OR
A promise or a set of promises which the law will enforce
✔✔Essential Elements of a contract - - meeting of the minds
CLAP - ✔✔consideration -- mutual exchange of anything of value (purchase price)
legal act
agree mutually
parties competent
✔✔Illegal purchase - ✔✔Capacity -- lacking legal mental capacity/drunk
Contracts with children are legal
Competent people with capacity are bound
For legal capacity questions, consult an attorney
Person who lacks capacity has ability to make the contract voidable, NOT the
competent party
✔✔Handling of EM deposit - ✔✔Deposited to a trust or escrow account no later than 3
banking days
, ✔✔Broker may transfer EM from his escrow to attorney's no more than ____ days prior
to the anticipated settlement date - ✔✔10
✔✔If license becomes inactive or expired, it is okay to still receive a commission so long
as - ✔✔the license was active at the time it was earned
✔✔Parole evidence rule - ✔✔addenda overrules contract
✔✔Consideration - ✔✔Anything of value can be bartered
✔✔MOG - ✔✔Proved property
Vacant land
MOG does NOT need to be provided by owner's of unimproved property
✔✔What does attorney need? - ✔✔Seller's deed
HOA info
Seller's title info
Contract
All bills to be paid at closing
✔✔There is a contract even if DD fee is not paid - ✔✔They go to court to solve the
dispute
✔✔You have a contract when _____ - ✔✔acceptance has been communicated
✔✔EMD can be written to who? - ✔✔Buyer's firm, listing firm, attorney
✔✔Void - ✔✔a contract that lacks an element/never existed
✔✔Voidable - ✔✔Usually based on a lack of capacity
✔✔Role of closing attorney - ✔✔Coordinate the process
Issues validity of title opinions
Prepares closing documents
Conducts closing
Usually selected and paid for by buyer
✔✔If licensee has doubts about legal capacity --> - ✔✔consult an attorney
✔✔Pre-licensing for NC - ✔✔75 hours
✔✔Delay of Settlement: - ✔✔NOT "Time of the essence"
Relies on multiple entities
