NC REAL ESTATE PRACTICE EXAM QUESTIONS
WITH 100% ACCURATE ANSWERS
Method of describing land which is NOT used in North Carolina? - Accurate answers Government
rectangular survey
In NC, the last day that real estate taxes for the current year may be paid without penalty is? -
Accurate answers By January 5th of the next year
A description of property that reads "Beginning at the large oak tree on the Northern line of State Road
18, approximately one mile west to the intersection state road and the Great Southern Railroad right-of-
way ,north approximately 15' along the drainage ditch".............. is - Accurate answers Legal
desritiopn that could be used in NC & metes and bounds description.
To be valid in NC, a deed must include - Accurate answers Words of Conveyance
All these freehold estates can pass by inheritance EXCEPT a......... - Accurate answers Conventional
life estate
Deed that contains no warranties at all and may convey no title at all, depending on the Grantors
interest in the property when the deed is execute? - Accurate answers Quitclaim Deed
The NC law that provides a contract to sell land is not protected against third party unless recorded is
called the .......... - Accurate answers Conner Act
Th deed that contains covenants against all encumbrances that would affect the title conveyed and
assures quiet enjoyment if the............................... - Accurate answers General Warranty Deed
A woman grants a life estate to her grandson and stipulate that on the grandsons death, the title to the
property will pass to her son- in-law. This second estate is known as an estate - Accurate answers
In remainder
A tenancy for years is a tenancy that - Accurate answers expires on a specific date.
A builder built a structure with six stories. Several years later, an ordinance was passed in that area
banning any building higher than four stories. The building should be allowed to continue in its existing
state because of a - Accurate answers nonconforming use
Under the NC Statute of Frauds, an oral lease for longer than three years is..... - Accurate answers
unenforceable
Police power does NOT include - Accurate answers deed restrictions
A cloud on title to a property may be cured by - Accurate answers obtaining quitclaim deeds from
the party or parties with possible interests in the property.
,Which of the following is true regarding liens in NC? - Accurate answers A specific lien is a lien
against a particular parcel of real estate, while a general lien may apply to all of the debtors property.
Someone seeking to be excused from the dictates of a zoning ordinance because of hardship should
request a - Accurate answers Variance
Under the concept of riparian rights, North Carolina owners of property adjacent to navigable rivers and
streams have the right to use the water and - Accurate answers Are considered to own the land to
the edge of the water.
A leasehold estate that automatically renews itself at each expiration is a - Accurate answers
periodic tenancy
In the real estate transaction in NC, the buyer is responsible for the cost of: - Accurate answers
Title insurance
Which of the following does NOT terminate an offer? - Accurate answers An offer from a third
party
What DOES Terminate an Offer? - Accurate answers *Revocation of the offer before its acceptance
*The death of the offeror before acceptance
*A counteroffer by the offeree
A buyer is under contract to purchase a vacation lot for $50,000. Shortly after going under contract, the
buyer changes her mind. A friend of the buyer would like to buy the lot on the same terms as the
original buyer. The lot owner agrees and enters into a new contract with the friend. The lot owner and
the original buyer tear up the original contract. This is known as - Accurate answers Novation
An offer to purchase real estate is a binding contract after it has been signed, communicated, and
accepted by whom? - Accurate answers Both the Buyer & Seller
A broker enters into a listing agreement with the seller wherein the seller will receive $120,000 from the
sale of a vacant lot and the broker will receive any sales proceeds exceeding that amount as
commission. This type of agreement is called a - Accurate answers Net listing
While using the NCAR/NCBA Standard 2-T Offer to Purchase and Contract form, buyer and seller agree
upon a 45-day due diligence period. Which of the following is TRUE? - Accurate answers Buyer has
no obligation to purchase the property during due diligence period and may be entitled to a full refund
of any earnest money deposit paid.
On Monday, an offer was written to buy a sellers vacant lot for $32,000. On Tuesday, the seller
counteroffers by raising the purchase price to $33,500. The prospective buyer does not reply, so on
Friday, the seller changes his mind and accepts the original price of $32,000. Under these circumstances,
there is - Accurate answers No valid agreement because the sellers counteroffer was a rejection of
the original offer.
, Which of the following situations present at signing would result in a void contract? - Accurate answers
The seller has been declared incompetent by a court.
Which of the following items are NOT usually prorated between the Seller and Buyer at closing? -
Accurate answers Tenant Security Deposits
Things that ARE usually prorated between the Seller and Buyer at closing? - Accurate answers Real
estate taxes
Prepaid Rents
Owner association dues
- Accurate answers The sellers are not obligated to pay the commission to anyone.
- Accurate answers A listing agreement under which the broker's commission is contingent on the
broker personally producing a ready, willing, and able buyer before the property is sold by the seller, or
another broker.
The "open listing" is mostly used by people trying to sell their home by owner who are also willing to
work
with real estate agents. Basically, it gives a real estate agent the right to bring buyers around to view
your
home. If their client buys your home, the agent earns a commission. There is nothing exclusive about an
open listing and a home seller can give out such listings to every agent who comes around.
Buyer-Agency Agreement - Accurate answers A principal-agent relationship in which the broker is
the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer
under the law of agency.
Comparative Market Analysis - Accurate answers A comparison of the prices of recently sold
homes that are similar to a listing seller's home in terms of location, style, and amenities:an estimate of
market value.
Exclusive-Agency Listing - Accurate answers A listing contract under which the owner appoints a
real estate broker as the exclusive agent for a designated period of time to sell the property, on the
owner's stated terms, for a commission. The owner reserves the right to sell without paying anyone a
commission if the owner sells to a prospect who has not been introduced or claimed by the broker.
Exclusive-Right-To-Sell-Listing - Accurate answers A listing contract under which the owner
appoints a real estate broker as the exclusive agent for a designated period of time to sell the property,
on the owner's stated terms, for a commission when the property is sold, regardless of who sells the
property.
Extender Clause and Override Clause - Accurate answers A carry-over or protection clause in a
listing contract that says the listing broker is entitled to commission for a time period after expiration of
the listing term if the property is transferred to a prospect that the broker introduced to their property
during the listing term: override clause. This clause is void if the property is listed with a broker.
WITH 100% ACCURATE ANSWERS
Method of describing land which is NOT used in North Carolina? - Accurate answers Government
rectangular survey
In NC, the last day that real estate taxes for the current year may be paid without penalty is? -
Accurate answers By January 5th of the next year
A description of property that reads "Beginning at the large oak tree on the Northern line of State Road
18, approximately one mile west to the intersection state road and the Great Southern Railroad right-of-
way ,north approximately 15' along the drainage ditch".............. is - Accurate answers Legal
desritiopn that could be used in NC & metes and bounds description.
To be valid in NC, a deed must include - Accurate answers Words of Conveyance
All these freehold estates can pass by inheritance EXCEPT a......... - Accurate answers Conventional
life estate
Deed that contains no warranties at all and may convey no title at all, depending on the Grantors
interest in the property when the deed is execute? - Accurate answers Quitclaim Deed
The NC law that provides a contract to sell land is not protected against third party unless recorded is
called the .......... - Accurate answers Conner Act
Th deed that contains covenants against all encumbrances that would affect the title conveyed and
assures quiet enjoyment if the............................... - Accurate answers General Warranty Deed
A woman grants a life estate to her grandson and stipulate that on the grandsons death, the title to the
property will pass to her son- in-law. This second estate is known as an estate - Accurate answers
In remainder
A tenancy for years is a tenancy that - Accurate answers expires on a specific date.
A builder built a structure with six stories. Several years later, an ordinance was passed in that area
banning any building higher than four stories. The building should be allowed to continue in its existing
state because of a - Accurate answers nonconforming use
Under the NC Statute of Frauds, an oral lease for longer than three years is..... - Accurate answers
unenforceable
Police power does NOT include - Accurate answers deed restrictions
A cloud on title to a property may be cured by - Accurate answers obtaining quitclaim deeds from
the party or parties with possible interests in the property.
,Which of the following is true regarding liens in NC? - Accurate answers A specific lien is a lien
against a particular parcel of real estate, while a general lien may apply to all of the debtors property.
Someone seeking to be excused from the dictates of a zoning ordinance because of hardship should
request a - Accurate answers Variance
Under the concept of riparian rights, North Carolina owners of property adjacent to navigable rivers and
streams have the right to use the water and - Accurate answers Are considered to own the land to
the edge of the water.
A leasehold estate that automatically renews itself at each expiration is a - Accurate answers
periodic tenancy
In the real estate transaction in NC, the buyer is responsible for the cost of: - Accurate answers
Title insurance
Which of the following does NOT terminate an offer? - Accurate answers An offer from a third
party
What DOES Terminate an Offer? - Accurate answers *Revocation of the offer before its acceptance
*The death of the offeror before acceptance
*A counteroffer by the offeree
A buyer is under contract to purchase a vacation lot for $50,000. Shortly after going under contract, the
buyer changes her mind. A friend of the buyer would like to buy the lot on the same terms as the
original buyer. The lot owner agrees and enters into a new contract with the friend. The lot owner and
the original buyer tear up the original contract. This is known as - Accurate answers Novation
An offer to purchase real estate is a binding contract after it has been signed, communicated, and
accepted by whom? - Accurate answers Both the Buyer & Seller
A broker enters into a listing agreement with the seller wherein the seller will receive $120,000 from the
sale of a vacant lot and the broker will receive any sales proceeds exceeding that amount as
commission. This type of agreement is called a - Accurate answers Net listing
While using the NCAR/NCBA Standard 2-T Offer to Purchase and Contract form, buyer and seller agree
upon a 45-day due diligence period. Which of the following is TRUE? - Accurate answers Buyer has
no obligation to purchase the property during due diligence period and may be entitled to a full refund
of any earnest money deposit paid.
On Monday, an offer was written to buy a sellers vacant lot for $32,000. On Tuesday, the seller
counteroffers by raising the purchase price to $33,500. The prospective buyer does not reply, so on
Friday, the seller changes his mind and accepts the original price of $32,000. Under these circumstances,
there is - Accurate answers No valid agreement because the sellers counteroffer was a rejection of
the original offer.
, Which of the following situations present at signing would result in a void contract? - Accurate answers
The seller has been declared incompetent by a court.
Which of the following items are NOT usually prorated between the Seller and Buyer at closing? -
Accurate answers Tenant Security Deposits
Things that ARE usually prorated between the Seller and Buyer at closing? - Accurate answers Real
estate taxes
Prepaid Rents
Owner association dues
- Accurate answers The sellers are not obligated to pay the commission to anyone.
- Accurate answers A listing agreement under which the broker's commission is contingent on the
broker personally producing a ready, willing, and able buyer before the property is sold by the seller, or
another broker.
The "open listing" is mostly used by people trying to sell their home by owner who are also willing to
work
with real estate agents. Basically, it gives a real estate agent the right to bring buyers around to view
your
home. If their client buys your home, the agent earns a commission. There is nothing exclusive about an
open listing and a home seller can give out such listings to every agent who comes around.
Buyer-Agency Agreement - Accurate answers A principal-agent relationship in which the broker is
the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer
under the law of agency.
Comparative Market Analysis - Accurate answers A comparison of the prices of recently sold
homes that are similar to a listing seller's home in terms of location, style, and amenities:an estimate of
market value.
Exclusive-Agency Listing - Accurate answers A listing contract under which the owner appoints a
real estate broker as the exclusive agent for a designated period of time to sell the property, on the
owner's stated terms, for a commission. The owner reserves the right to sell without paying anyone a
commission if the owner sells to a prospect who has not been introduced or claimed by the broker.
Exclusive-Right-To-Sell-Listing - Accurate answers A listing contract under which the owner
appoints a real estate broker as the exclusive agent for a designated period of time to sell the property,
on the owner's stated terms, for a commission when the property is sold, regardless of who sells the
property.
Extender Clause and Override Clause - Accurate answers A carry-over or protection clause in a
listing contract that says the listing broker is entitled to commission for a time period after expiration of
the listing term if the property is transferred to a prospect that the broker introduced to their property
during the listing term: override clause. This clause is void if the property is listed with a broker.
