NC POST LICENSING 302 QUESTIONS AND
ANSWERS
Which of the following statements best describes a buyer performing due diligence during a
North Carolina real estate transaction? ( CORRECT ANSWER ) - The buyer meets with a
lender to get pre-qualified, arranges a home inspection and appraisal, asks questions, and
investigates any other areas of the property the buyer feels may need it.
One advantage of telling the buyers' agents that there are multiple offers on a property is
_______. ( CORRECT ANSWER ) - It gives buyers an incentive to create a better offer
Tiffany, an investor, wants to net 12% profit after paying a brokerage commission of 7%. If
her original purchase price was $349,000, what's the minimum offer she can accept? Round
to nearest whole dollar. ( CORRECT ANSWER ) - $420,301
Which one of these scenarios accurately depicts how to handle earnest money? ( CORRECT
ANSWER ) - Lisa, a closing attorney, is permitted to deposit disputed earnest money funds
with the courts pending dispute settlement.
The Slorahns are purchasing a property in Wilmington and are concerned about the title.
They want to have a title search performed. Who can perform a title search? ( CORRECT
ANSWER ) - The closing attorney
````What are accrued expense items? ( CORRECT ANSWER ) - Items to be divided
proportionately between the buyer and seller that the seller owes
Which of the following actions is a North Carolina broker who's acting as an agent in a
transaction permitted to do? ( CORRECT ANSWER ) - Complete a pre-printed offer when
directed to do so by the transaction parties.
`````The Back-Up Addendum should be used when ______. ( CORRECT ANSWER ) - The
seller wants to accept a secondary offer
North Carolina licensee Tara is completing the Offer to Purchase and Contract, Standard
Form 2-T, for her married buyer clients Bob and Maggie McKenzie, who are listed in
LinkedIn and Facebook as Robert "Bobby Mack" McKenzie and Margaret (née Harper)
,McKenzie. Their legal names are Robert H. McKenzie and Margaret E. McKenzie. How
should Tara list their names in the contract? ( CORRECT ANSWER ) - Robert H.
McKenzie and wife, Margaret E. McKenzie
North Carolina buyer Travis needed to obtain a mortgage loan to purchase another
property that's under contract. Which of these statements applies in this situation? (
CORRECT ANSWER ) - The Loan paragraph in Standard Form 12-T notes the buyer is
entitled to apply for a mortgage loan. This paragraph is NOT a contingency. If Travis isn't
approved and doesn't find that out until after the due diligence period expires, he'll lose his
earnest
*The Loan paragraph in Standard Form 12-T notes that the buyer is entitled to apply for
and seek approval for a loan. The buyer's obligation to purchase the property is NOT
contingent on obtaining a loan. The buyer should work with the lender to try to determine
whether it's likely the buyer will be approved for the loan before the due diligence period
expires. If the buyer isn't approved before the expiration, the buyer may terminate the
contract and have the earnest money returned.
______ lending was a contributing factor to the housing collapse in the mid-2000s (
CORRECT ANSWER ) - Predatory
If the property tax proration is $4.50 per day, the settlement date is March 13, the buyer
and seller have not negotiated a different proration method, and it's not a leap year, what
amount will be charged to the seller and to the buyer respectively for taxes? ( CORRECT
ANSWER ) - $324 to the seller and $1,318.50 to the buyer
Which of the following statements regarding electronic transactions in North Carolina is
true? ( CORRECT ANSWER ) - A client may request hard-copy records even if the parties
agreed to use electronic signatures and records.
You're a listing broker managing multiple offers. You should avoid doing which of the
following? ( CORRECT ANSWER ) - Injecting your personal opinion as to which is the
best offer
Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-
offer. Kendra is now considering the counter. What role does Kendra currently have in this
scenario? ( CORRECT ANSWER ) - Offeree
, **The seller considering a buyer's offer is an offeree, but if that seller makes a counter-offer,
then the seller becomes the offeror, and the buyer becomes an offeree
Which of the following is considered a vice of consent in North Carolina? ( CORRECT
ANSWER ) - Duress
North Carolina buyer Max wanted to pay the due diligence fee and initial earnest money
deposit by personal check. Which of the following statements is correct in this situation? (
CORRECT ANSWER ) - Both fees may be paid by personal check, but each must be paid
separately in checks made out to different people.
Which of the following individuals may act as the escrow agent in a real estate closing? (
CORRECT ANSWER ) - Sarah, a representative from the escrow department at the buyer's
lender
A _______ occurs when the seller may not have enough funds to pay the costs of selling the
property, even if a buyer pays the full purchase price. ( CORRECT ANSWER ) - Short sale
After North Carolina buyer Henry accompanied his inspector on the property, he received a
call from his agent, Clark. Apparently, either Henry or his inspector had left a window open.
When it stormed, the wooden window sill warped and was ruined. Who is responsible for
this damage under the terms of Standard Form 2-T? ( CORRECT ANSWER ) - The buyer
must pay for it, because he's responsible for paying to repair any property damage (with
some exceptions) that occurs during a property investigation, whether it's caused by the
buyer or the buyer's contractor.
A real estate transaction has a closing date of May 20. The seller, who's responsible for
closing costs up to but not including the day of closing, has already paid annual property
taxes of $1,949. How will the closing statement reflect the proration for the seller? Use a
calendar year proration, and round to the nearest dollar. ( CORRECT ANSWER ) -
Credited $1,207
Which of the following is NOT a valid reason for an offer termination in North Carolina? (
CORRECT ANSWER ) - Improper forms
ANSWERS
Which of the following statements best describes a buyer performing due diligence during a
North Carolina real estate transaction? ( CORRECT ANSWER ) - The buyer meets with a
lender to get pre-qualified, arranges a home inspection and appraisal, asks questions, and
investigates any other areas of the property the buyer feels may need it.
One advantage of telling the buyers' agents that there are multiple offers on a property is
_______. ( CORRECT ANSWER ) - It gives buyers an incentive to create a better offer
Tiffany, an investor, wants to net 12% profit after paying a brokerage commission of 7%. If
her original purchase price was $349,000, what's the minimum offer she can accept? Round
to nearest whole dollar. ( CORRECT ANSWER ) - $420,301
Which one of these scenarios accurately depicts how to handle earnest money? ( CORRECT
ANSWER ) - Lisa, a closing attorney, is permitted to deposit disputed earnest money funds
with the courts pending dispute settlement.
The Slorahns are purchasing a property in Wilmington and are concerned about the title.
They want to have a title search performed. Who can perform a title search? ( CORRECT
ANSWER ) - The closing attorney
````What are accrued expense items? ( CORRECT ANSWER ) - Items to be divided
proportionately between the buyer and seller that the seller owes
Which of the following actions is a North Carolina broker who's acting as an agent in a
transaction permitted to do? ( CORRECT ANSWER ) - Complete a pre-printed offer when
directed to do so by the transaction parties.
`````The Back-Up Addendum should be used when ______. ( CORRECT ANSWER ) - The
seller wants to accept a secondary offer
North Carolina licensee Tara is completing the Offer to Purchase and Contract, Standard
Form 2-T, for her married buyer clients Bob and Maggie McKenzie, who are listed in
LinkedIn and Facebook as Robert "Bobby Mack" McKenzie and Margaret (née Harper)
,McKenzie. Their legal names are Robert H. McKenzie and Margaret E. McKenzie. How
should Tara list their names in the contract? ( CORRECT ANSWER ) - Robert H.
McKenzie and wife, Margaret E. McKenzie
North Carolina buyer Travis needed to obtain a mortgage loan to purchase another
property that's under contract. Which of these statements applies in this situation? (
CORRECT ANSWER ) - The Loan paragraph in Standard Form 12-T notes the buyer is
entitled to apply for a mortgage loan. This paragraph is NOT a contingency. If Travis isn't
approved and doesn't find that out until after the due diligence period expires, he'll lose his
earnest
*The Loan paragraph in Standard Form 12-T notes that the buyer is entitled to apply for
and seek approval for a loan. The buyer's obligation to purchase the property is NOT
contingent on obtaining a loan. The buyer should work with the lender to try to determine
whether it's likely the buyer will be approved for the loan before the due diligence period
expires. If the buyer isn't approved before the expiration, the buyer may terminate the
contract and have the earnest money returned.
______ lending was a contributing factor to the housing collapse in the mid-2000s (
CORRECT ANSWER ) - Predatory
If the property tax proration is $4.50 per day, the settlement date is March 13, the buyer
and seller have not negotiated a different proration method, and it's not a leap year, what
amount will be charged to the seller and to the buyer respectively for taxes? ( CORRECT
ANSWER ) - $324 to the seller and $1,318.50 to the buyer
Which of the following statements regarding electronic transactions in North Carolina is
true? ( CORRECT ANSWER ) - A client may request hard-copy records even if the parties
agreed to use electronic signatures and records.
You're a listing broker managing multiple offers. You should avoid doing which of the
following? ( CORRECT ANSWER ) - Injecting your personal opinion as to which is the
best offer
Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-
offer. Kendra is now considering the counter. What role does Kendra currently have in this
scenario? ( CORRECT ANSWER ) - Offeree
, **The seller considering a buyer's offer is an offeree, but if that seller makes a counter-offer,
then the seller becomes the offeror, and the buyer becomes an offeree
Which of the following is considered a vice of consent in North Carolina? ( CORRECT
ANSWER ) - Duress
North Carolina buyer Max wanted to pay the due diligence fee and initial earnest money
deposit by personal check. Which of the following statements is correct in this situation? (
CORRECT ANSWER ) - Both fees may be paid by personal check, but each must be paid
separately in checks made out to different people.
Which of the following individuals may act as the escrow agent in a real estate closing? (
CORRECT ANSWER ) - Sarah, a representative from the escrow department at the buyer's
lender
A _______ occurs when the seller may not have enough funds to pay the costs of selling the
property, even if a buyer pays the full purchase price. ( CORRECT ANSWER ) - Short sale
After North Carolina buyer Henry accompanied his inspector on the property, he received a
call from his agent, Clark. Apparently, either Henry or his inspector had left a window open.
When it stormed, the wooden window sill warped and was ruined. Who is responsible for
this damage under the terms of Standard Form 2-T? ( CORRECT ANSWER ) - The buyer
must pay for it, because he's responsible for paying to repair any property damage (with
some exceptions) that occurs during a property investigation, whether it's caused by the
buyer or the buyer's contractor.
A real estate transaction has a closing date of May 20. The seller, who's responsible for
closing costs up to but not including the day of closing, has already paid annual property
taxes of $1,949. How will the closing statement reflect the proration for the seller? Use a
calendar year proration, and round to the nearest dollar. ( CORRECT ANSWER ) -
Credited $1,207
Which of the following is NOT a valid reason for an offer termination in North Carolina? (
CORRECT ANSWER ) - Improper forms
