Superior NC Real Estate Important Final Exam Questions With 100% Correct Answers.

A buyer is to assume an existing loan of $80,000 at 9.5% with the approval of the lender. The interest on the loan, which is paid in arrears, would appear on the closing statement as: A.A single entry; debit to the seller B.A single entry: credit to the buyer C.A double entry: debit to the seller, credit to the buyer D. A double entry: credit to the seller, debit to the buyer - C. a double entry: debit to the seller, credit to the buyer. When a loan is assumed there is no new loan being established. The buyer's obligation will begin with the very next payment. Since interest is paid in arrears that next payment paid by the buyer will include interest for the month in which they acquired the property. The seller will have to provide a credit to the buyer for that portion of the month in which they occupied the property and it will appear as a debit to the seller and a credit to the buyer. A dedication refers to A. A instrument used in place of a mortgage B. Additional fee charged by the lender C. Transfer of real property from private owner to public agency D. Right of owner to use adjacent land of another - C. Transfer of real property from private owner to public agency A loan in which the lender is making regularly scheduled payments to the borrower would be referred to as a: A. Graduated Payment Loan B. Negative Amortization Loan C. Reverse Annuity Mortgage (RAM) D. Package Loan - C. Reverse Annuity Mortgage A loan where the bank (mortgagee) is making payments to the borrower (mortgagor) is a reverse annuity mortgage (RAM). They were designed to allow elderly individuals access the equity in their homewithout qualifying and having a mortgage payment. Lender rules differ as to the age of the homeowner and the amount of equity required to obtain this type of loan. A typical residential property management agreement would impose all of the following duties upon a property manager, EXCEPT: A. cleaning and maintaining the common areas B.collecting rents due C.maintaining records and reporting to the owner D.establishing a depreciation schedule - D. establishing a depreciation schedule. Cleaning and maintenance of common areas will be included in the property management agreement. An attorney of fact is best described as A. a fiduciary to his principal B. an agent C. an attorney D. a client - A. a fiduciary to his principal An unlicensed assistant may not A. Search public records B. place signs in yard C. schedule appointments D. assist other in the sale or lease - D. assist others in the sale of lease Concerning the residential property disclosure statement, which of the following is/are TRUE? A. Licensees are required to advise and assist the seller with the disclosure. B. The disclosure must be provided at first substantial contact. C. Failure to provide the disclosure creates a 5-day right of recission period for the buyer. D. A For Sale by Owner is exempt from providing the disclosure. - A. Licensees are required to advise and assist the seller with the disclosure.The role of the agent in regard to the Property Disclosure Statement is to advise and assist the seller. The seller may choose to answer questions, "yes," "no," or "no representation." However, the licensee should not tell the seller to respond to any question in a particular manner. Encapsulation refers to: - The sealing away of friable asbestos How long do you have to notify the NCREC of a conviction of a crime? - 60 days 10 days to report address or name changes If a person obtains property through a ground lease, which of the following rights does he/she typically receive? A. The right to build structures on the property B.The right to transfer ownership of the property to a 3rd party, during term of the ground lease. C.The rights to all minerals beneath the ground. D.The rights to oil and gas deposits beneath the ground. - A. The right to build structures on the property. Although the actual rights and interests that the tenant may acquire will be contained in the lease, a ground lease, which is usually for a long term, does typically allow the lessee to construct a building on the property. At the end of the lease term those improvements will become the property of the lessor. Ground leases do not usually transfer mineral or subsurface rights to the lessee. Radon becomes a material fact in North Carolina: A. Only in regard to properties located in the western part of the state B. In all residential real estate transactions C. Only when the presence of radon can be sensed by smell D. When the level of radon is 4.0 picocuries or higher - D. When the level of radon is 4.0 picocuries or higher. RESPA - -Real Estate Settlement Procedures Act: applies ONLY to 1-4 family residential transactions, transactions involving a "federally related" mortgage (conventional, FHA, VA)RESPA regulations would not apply to which of the following? A. 1-4 family loans B. Purchase money taken out by the seller C. 1st lien residential mortgage D. Home equity loan - B. purchase money taken out by the seller