NC REAL ESTATE FINAL EXAM PREP
QUESTIONS WITH 100% ACCURATE ANSWERS
When an owner purchased a home 4 years ago, she installed an expensive, antique crystal chandelier.
The light fixture was also a family heirloom. The owner accepted an offer on the NCAR Standard Offer to
Purchase and Contract which makes no specific mention of the chandelier. Prior to closing, the owner
removed the chandelier and replaced it with a cheaper fixture. Based on these facts, which of the
following statements best describes the legal status of the chandelier?
A. The chandelier was technically a fixture, but the owner had a legal right to remove it because it was a
family heirloom.
B. The chandelier was not a fixture and could be removed by the owner prior to closing bc it was clearly
not the owner's intent to make a family heirloom a permanent part of the real estate.
C. The chandelier was a fixture and it's ownership passed with the home to the buyer bc the contract did
not exempt it from the sale.
D. - Accurate answers C. The chandelier was a fixture and it's ownership passed with the home to
the buyer bc the contract did not exempt it from the sale.
A buyer recently purchased a condominium. All of the following describe the buyer's interest in this
hybrid form or ownership EXCEPT:
A. The buyer owns his/her unit outright and shares ownership with all the other complex owners in all
the buildings and land that make up the condominium complex.
B. The buyer's shared ownership of the condominium "common areas" include the physical structure of
the building containing the individual units, the land on which the buildings stand, parking areas, and all
community facilities such as a clubhouse, swimming pool, tennis courts, greenway, etc.
C. The buyer's condominium unit ownership interest is considered to be a non-freehold estate.
D. The buyer and each condominium unit owner must pay real property taxes based on the value of
their units and their associated undivided interest in the common areas. - Accurate answers C. The
buyer's condominium unit ownership interest is considered to be a non-freehold estate.
An unmarried couple purchased a lake lot together on June 12. The deed listed both of them as grantees
without specifying how they were to hold title to the lot. The couple was married the following April 1.
Two weeks later, they purchased a house in Cary, NC. The deed to the house also listed both of them as
grantees without specifying the form of the ownership. Which of the following statements is correct?
A. At first they help the lake lot as tenants in common, but upon their marriage, ownership of the lake
converted to tenancy by entirety.
B. They hold the Cary house as tenants by the entirety.
C. They hold both the lake lot and the Cary house as tenants in common.
D. They hold the lake lot as joint tenants and the Cary house as tenants in common. - Accurate answers
B. They hold the Cary house as tenants by the entirety.
Sellers are using their home to run a pet sitting business and have done so for the last 7 years. The
seller's home is zoned for residential use only. The sellers sell the home and the business to a buyer. The
, buyer moves into the home and continues to run the pet sitting business for another 6 years. What best
describes the situation?
A. The seller's use of the home to run a business was illegal and in violation of current zoning regulation
for the first 5 years. After 5 years, the business became legal non-conforming and is no longer in
violation of the zoning regulations.
B. The seller's use of the home to run a business was not illegal since the sellers could have sought a
variance from the local zoning enforcement department.
C. The seller's use of the home was to a business was illegal and in violation of current zoning regulation.
The new buyer's continued use of the home to run a business is also in violat - Accurate answers C.
The seller's use of the home was to a business was illegal and in violation of current zoning regulation.
The new buyer's continued use of the home to run a business is also in violation of the zoning
regulations and is also illegal.
A developer has a cul-de-sac lot and wants to build a house there; however, a front setback requirement
under the county zoning ordinance would force the planned house to encroach on a flood hazard area
that is isolated in the rear of the lot. In order to comply with the legal requirements for building the
house on this lot, the developer must obtain from the county a
A. non-conforming use permit
B. special exception permit
C. variance
D. special use permit - Accurate answers C. variance
Broker B has entered into a marketing campaign that involves sending 6,000 pieces by postal mail to a
particular zip code. Which statement is TRUE regarding the solicitation of business?
A. The broker violated the Do Not Call laws if he sends mail to owners on that specific list.
B. E-Commerce legislation does not prohibit or limit marketing by postal mail.
C. Under the Do Not Fax and Do Not Call laws, the broker may initiate a follow-up phone call or fax to
owners who have received the mailed marketing pieces.
D. CAN-SPAM regulates the numbers of marketing pieces mailed out by real estate brokers. - Accurate
answers B. E-Commerce legislation does not prohibit or limit marketing by postal mail.
A real estate licensee who was licensed 18 months ago and has recently completed all post-licensing
courses is not operating as a sole proprietor without a firm license. He has decided to grow his business
and has developed an extensive marketing and advertising plan and he has plans to open his own firm
and implement his plan immediately. Which of the following statements is TRUE?
A. He should put his plans on hold bc he does not have enough experience according to license law
rules.
B. Since he has removed his provisional status and become a full broker, he should move forward with
his plan immediately.
C. He will now need to apply for a firm license with the NCREC.
D. He will need to take the 12 hour BIC course before he can declare himself the Broker-In-Charge. -
Accurate answers A. He should put his plans on hold bc he does not have enough experience
according to license law rules.
QUESTIONS WITH 100% ACCURATE ANSWERS
When an owner purchased a home 4 years ago, she installed an expensive, antique crystal chandelier.
The light fixture was also a family heirloom. The owner accepted an offer on the NCAR Standard Offer to
Purchase and Contract which makes no specific mention of the chandelier. Prior to closing, the owner
removed the chandelier and replaced it with a cheaper fixture. Based on these facts, which of the
following statements best describes the legal status of the chandelier?
A. The chandelier was technically a fixture, but the owner had a legal right to remove it because it was a
family heirloom.
B. The chandelier was not a fixture and could be removed by the owner prior to closing bc it was clearly
not the owner's intent to make a family heirloom a permanent part of the real estate.
C. The chandelier was a fixture and it's ownership passed with the home to the buyer bc the contract did
not exempt it from the sale.
D. - Accurate answers C. The chandelier was a fixture and it's ownership passed with the home to
the buyer bc the contract did not exempt it from the sale.
A buyer recently purchased a condominium. All of the following describe the buyer's interest in this
hybrid form or ownership EXCEPT:
A. The buyer owns his/her unit outright and shares ownership with all the other complex owners in all
the buildings and land that make up the condominium complex.
B. The buyer's shared ownership of the condominium "common areas" include the physical structure of
the building containing the individual units, the land on which the buildings stand, parking areas, and all
community facilities such as a clubhouse, swimming pool, tennis courts, greenway, etc.
C. The buyer's condominium unit ownership interest is considered to be a non-freehold estate.
D. The buyer and each condominium unit owner must pay real property taxes based on the value of
their units and their associated undivided interest in the common areas. - Accurate answers C. The
buyer's condominium unit ownership interest is considered to be a non-freehold estate.
An unmarried couple purchased a lake lot together on June 12. The deed listed both of them as grantees
without specifying how they were to hold title to the lot. The couple was married the following April 1.
Two weeks later, they purchased a house in Cary, NC. The deed to the house also listed both of them as
grantees without specifying the form of the ownership. Which of the following statements is correct?
A. At first they help the lake lot as tenants in common, but upon their marriage, ownership of the lake
converted to tenancy by entirety.
B. They hold the Cary house as tenants by the entirety.
C. They hold both the lake lot and the Cary house as tenants in common.
D. They hold the lake lot as joint tenants and the Cary house as tenants in common. - Accurate answers
B. They hold the Cary house as tenants by the entirety.
Sellers are using their home to run a pet sitting business and have done so for the last 7 years. The
seller's home is zoned for residential use only. The sellers sell the home and the business to a buyer. The
, buyer moves into the home and continues to run the pet sitting business for another 6 years. What best
describes the situation?
A. The seller's use of the home to run a business was illegal and in violation of current zoning regulation
for the first 5 years. After 5 years, the business became legal non-conforming and is no longer in
violation of the zoning regulations.
B. The seller's use of the home to run a business was not illegal since the sellers could have sought a
variance from the local zoning enforcement department.
C. The seller's use of the home was to a business was illegal and in violation of current zoning regulation.
The new buyer's continued use of the home to run a business is also in violat - Accurate answers C.
The seller's use of the home was to a business was illegal and in violation of current zoning regulation.
The new buyer's continued use of the home to run a business is also in violation of the zoning
regulations and is also illegal.
A developer has a cul-de-sac lot and wants to build a house there; however, a front setback requirement
under the county zoning ordinance would force the planned house to encroach on a flood hazard area
that is isolated in the rear of the lot. In order to comply with the legal requirements for building the
house on this lot, the developer must obtain from the county a
A. non-conforming use permit
B. special exception permit
C. variance
D. special use permit - Accurate answers C. variance
Broker B has entered into a marketing campaign that involves sending 6,000 pieces by postal mail to a
particular zip code. Which statement is TRUE regarding the solicitation of business?
A. The broker violated the Do Not Call laws if he sends mail to owners on that specific list.
B. E-Commerce legislation does not prohibit or limit marketing by postal mail.
C. Under the Do Not Fax and Do Not Call laws, the broker may initiate a follow-up phone call or fax to
owners who have received the mailed marketing pieces.
D. CAN-SPAM regulates the numbers of marketing pieces mailed out by real estate brokers. - Accurate
answers B. E-Commerce legislation does not prohibit or limit marketing by postal mail.
A real estate licensee who was licensed 18 months ago and has recently completed all post-licensing
courses is not operating as a sole proprietor without a firm license. He has decided to grow his business
and has developed an extensive marketing and advertising plan and he has plans to open his own firm
and implement his plan immediately. Which of the following statements is TRUE?
A. He should put his plans on hold bc he does not have enough experience according to license law
rules.
B. Since he has removed his provisional status and become a full broker, he should move forward with
his plan immediately.
C. He will now need to apply for a firm license with the NCREC.
D. He will need to take the 12 hour BIC course before he can declare himself the Broker-In-Charge. -
Accurate answers A. He should put his plans on hold bc he does not have enough experience
according to license law rules.
