303 NC POST LICENSING EXAM 2024
WITH ACTUAL CORRECT QUESTIONS
AND VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS
AND SOLUTIONS |ALREADY GRADED
A+|NEWEST|GUARANTEED
PASS|LATEST UPDATE
Condo projects may create a special class of common areas that is reserved for use by one or more
units, these areas are called?
Limited common areas
How is a condo different from a townhome?
- Individual ownership of exterior plus the land
- Horizontally attached
- Shared use of common areas
- Common areas are owned by the home owners association
Condo interiors are typically covered by
HO6 Owners "walls in" coverage
What condo policy covers common areas?
Master policy typically covers common areas.
NC coverage policies may have issues arise such as;
- Adequacy of coverage
- Solvency of condo association
- Claims history
- Safety and health issues
A timeshare in NC is the sale or lease with a right to?
with a right to occupy the property or unit at least 5 or more seperate periods over a period of at least 5
years.
1|Page
,Sale of a timeshare interest requires that a public offering statement disclosure be provided to
prospective buyer when?
Prior to contract, and there must be a certificate of registration prior to sale or an offer to sell or lease.
The developer must designate a licensee who is not on pb status to act as the
project broker, their job is to manage and supervise the timeshare persons.
A prospective buyer of a timeshare has a _____ day rescission period.
5 day rescission period, If the rescission time cannot be waived and if exercised the buyer cannot forfeit
monies paid. Monies must be returned to the buyer in the event of rescission within 30 days of the date
the contract was executed.
A developer may be fined
$500 for non-compliance and violations
What are the trust account and record keeping rules for a developer?
The same as for any broker.
Retain records for 3 years
Make deposits within 3 days
Manufactured homes are by definition;
Personal property
Delivered in sections and assembled on site, once these homes are assembled, they become real
property immediately.
Manufactured homes are..
- Built to HUD standards with a HUD certification
- Titled and regulated by the department of Motor vehicles. (DMV)
Manufactured homes can be converted to real property for taxation and financing purposes if?
- Own the land
- Remove hitch, wheels, and axles
- Get an affidavit of affixture (cancels DMV registration)
The non-resident limited commercial broker's license is only available to?
Non-residents of north carolina.
Requirements to obtain NLCL
1. File an application
2. Affiliate with and NC broker
3. Limited to commercial practice
(Must have an active license in another state
2|Page
,Commercial real estate transaction..
Transaction times in commercial are often longer, loan terms are typically shorter, and interest rates are
generally higher.
The 5 basic types of commercial property are..
1. Office
2. Retail
3. Industrial
4. Land
5. Specialty properties
Commercial Class A means
No more than 20 years old, modern features, well maintained, excellent quality.
Class B in commercial means?
20-30 years old, maintained and functional, some limitation such as parking and location.
Class C in commercial means?
older than 30 years, serious limitations, lack of maintenance, parking, security.
What is a core area?
Area used up for building functions, lobbies, elevators, stairs, restrooms.
What is a rentable area?
Includes the usable area plus the core area.
Floor plate -
Area of each floor determined by measuring along the exterior walls.
Usable area -
The floor plan minus the core area.
Office rentable rates are usually calculated and based on?
Square foot for the rentable area.
Tenant improvements
When tenant makes and pays for repairs or improvements in a commercial lease or sale.
Upfits
When owner makes and pays for repairs or improvements in a commercial lease or sale.
What is considered a "Pass through provision"
3|Page
, Taxes, insurance, and maintenence.
Net lease with a base year stop
When the owner pays items for the first year and the tenant pays the amount in subsequent years that
is over the base amount.
Absorption studies
Provided by a commercial broker to client, a study analyzing the amount of space leased and available
over a particular period of time.
Key factors that affect commercial retail space:
- Location
- Area demographics
- Traffic patterns
- Income levels
- Growth
- Trends
There is no universally accepted standard for measuring of leasing retail space, but is usually leased;
Square foot as an annual dollar amount.
When dealing with an industrial space, environmental issues are generally a major concern and sale or
lease may involve environmental impact studies. The following are examples;
Phase I - Research and due diligence
Phase II - Core drilling, samples, testing
Phase III - Rem and clean up
In commercial, A common practice is to use __________________________ before a final purchase
contract is put together by the parties.
Letter of intent
Commercial purchase contracts usually contain an inspection period. When dealing with commercial
property this is known as a....
10 Day free look period
When valuing an income-producing property, the best appraisal approach to utilize would be the
Income approach
Real estate that has not been an owner-occupied residence for 2 out of the last 5 years prior to sale, is
subject to:
Capital gains tax
Property that is used in a trade or business may qualify for a tax credit in the form of:
4|Page
WITH ACTUAL CORRECT QUESTIONS
AND VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS
AND SOLUTIONS |ALREADY GRADED
A+|NEWEST|GUARANTEED
PASS|LATEST UPDATE
Condo projects may create a special class of common areas that is reserved for use by one or more
units, these areas are called?
Limited common areas
How is a condo different from a townhome?
- Individual ownership of exterior plus the land
- Horizontally attached
- Shared use of common areas
- Common areas are owned by the home owners association
Condo interiors are typically covered by
HO6 Owners "walls in" coverage
What condo policy covers common areas?
Master policy typically covers common areas.
NC coverage policies may have issues arise such as;
- Adequacy of coverage
- Solvency of condo association
- Claims history
- Safety and health issues
A timeshare in NC is the sale or lease with a right to?
with a right to occupy the property or unit at least 5 or more seperate periods over a period of at least 5
years.
1|Page
,Sale of a timeshare interest requires that a public offering statement disclosure be provided to
prospective buyer when?
Prior to contract, and there must be a certificate of registration prior to sale or an offer to sell or lease.
The developer must designate a licensee who is not on pb status to act as the
project broker, their job is to manage and supervise the timeshare persons.
A prospective buyer of a timeshare has a _____ day rescission period.
5 day rescission period, If the rescission time cannot be waived and if exercised the buyer cannot forfeit
monies paid. Monies must be returned to the buyer in the event of rescission within 30 days of the date
the contract was executed.
A developer may be fined
$500 for non-compliance and violations
What are the trust account and record keeping rules for a developer?
The same as for any broker.
Retain records for 3 years
Make deposits within 3 days
Manufactured homes are by definition;
Personal property
Delivered in sections and assembled on site, once these homes are assembled, they become real
property immediately.
Manufactured homes are..
- Built to HUD standards with a HUD certification
- Titled and regulated by the department of Motor vehicles. (DMV)
Manufactured homes can be converted to real property for taxation and financing purposes if?
- Own the land
- Remove hitch, wheels, and axles
- Get an affidavit of affixture (cancels DMV registration)
The non-resident limited commercial broker's license is only available to?
Non-residents of north carolina.
Requirements to obtain NLCL
1. File an application
2. Affiliate with and NC broker
3. Limited to commercial practice
(Must have an active license in another state
2|Page
,Commercial real estate transaction..
Transaction times in commercial are often longer, loan terms are typically shorter, and interest rates are
generally higher.
The 5 basic types of commercial property are..
1. Office
2. Retail
3. Industrial
4. Land
5. Specialty properties
Commercial Class A means
No more than 20 years old, modern features, well maintained, excellent quality.
Class B in commercial means?
20-30 years old, maintained and functional, some limitation such as parking and location.
Class C in commercial means?
older than 30 years, serious limitations, lack of maintenance, parking, security.
What is a core area?
Area used up for building functions, lobbies, elevators, stairs, restrooms.
What is a rentable area?
Includes the usable area plus the core area.
Floor plate -
Area of each floor determined by measuring along the exterior walls.
Usable area -
The floor plan minus the core area.
Office rentable rates are usually calculated and based on?
Square foot for the rentable area.
Tenant improvements
When tenant makes and pays for repairs or improvements in a commercial lease or sale.
Upfits
When owner makes and pays for repairs or improvements in a commercial lease or sale.
What is considered a "Pass through provision"
3|Page
, Taxes, insurance, and maintenence.
Net lease with a base year stop
When the owner pays items for the first year and the tenant pays the amount in subsequent years that
is over the base amount.
Absorption studies
Provided by a commercial broker to client, a study analyzing the amount of space leased and available
over a particular period of time.
Key factors that affect commercial retail space:
- Location
- Area demographics
- Traffic patterns
- Income levels
- Growth
- Trends
There is no universally accepted standard for measuring of leasing retail space, but is usually leased;
Square foot as an annual dollar amount.
When dealing with an industrial space, environmental issues are generally a major concern and sale or
lease may involve environmental impact studies. The following are examples;
Phase I - Research and due diligence
Phase II - Core drilling, samples, testing
Phase III - Rem and clean up
In commercial, A common practice is to use __________________________ before a final purchase
contract is put together by the parties.
Letter of intent
Commercial purchase contracts usually contain an inspection period. When dealing with commercial
property this is known as a....
10 Day free look period
When valuing an income-producing property, the best appraisal approach to utilize would be the
Income approach
Real estate that has not been an owner-occupied residence for 2 out of the last 5 years prior to sale, is
subject to:
Capital gains tax
Property that is used in a trade or business may qualify for a tax credit in the form of:
4|Page
