Modern Real Estate Practice in NC 10th
edition Exam Actual Questions and
CORRECT Answers
Which of the following loans exposes the lender to the greatest degree of risk?
A. FHA
B. Conventional, with 95% LTV
C. Construction
D. VA, with no down payment - CORRECT ANSWER C. Construction
A real estate sales contract becomes valid when
A. the written offer has been signed by both the offeror and the offeree
B. communication of acceptance is given to the offeror or offeror's agent
C. communication of acceptance is given to the offeree or offeree's agent
D. earnest money has been deposited into the escrow agent's trust account - CORRECT
ANSWER B. communication of acceptance is given to the offeror or offeror's agent
An active NC non-provisional broker who is affiliated with a real estate firm may perform
which of the following services as a sole proprietor without declaring himself or herself as
broker-in-charge?
A. List properties for sale
B. Establish and advertise a buyer referral service
C. Market and manage rental properties owned by other persons
D. Represent buyers as long as the broker does not solicit the business - CORRECT
ANSWER D. Represent buyers as long as the broker does not solicit the business
Which of the following BEST defines real estate?
A. Land and the air above it
B. Land and the buildings permanently affixed to it
,C. Land and all things permanently affixed to it
D. Land and the mineral rights in the land - CORRECT ANSWER C. Land and all
things permanently affixed to it
Which of the following is NOT a physical characteristic of land?
A. Indestructibility
B. Scarcity
C. Immobility
D. Uniqueness - CORRECT ANSWER B. Scarcity
In NC, the term provisional broker refers to
A. A REALTOR
B. a licensee who must operate under the supervision of a broker-in-charge
C. a licensee who must focus on a specialty area of real estate
D. an individual who has invested in real estate - CORRECT ANSWER B. a licensee
who must operate under the supervision of a broker-in-charge
Situs refers to
A. view from the property
B. improvements made to the building site
C. societal factors that are related to the location
D. immobility of real estate - CORRECT ANSWER C. societal factors that are related
to the location
Which of the following is NOT an economic characteristic of real estate?
A. Indestructibility
B. Scarcity
C. Permanence of improvement
D. Location - CORRECT ANSWER A. Indestructibility
,Which of the following physical and economic factors would a land developer take into
consideration when determining the optimum use of a parcel of land?
A. Transportation
B. Available natural resources
C. Contour and elevation
D. All of these - CORRECT ANSWER D. All of these
A theater or hotel would be classified under the real estate category of
A. Residential
B. Commercial
C. Agricultural
D. Industrial - CORRECT ANSWER B. Commercial
The demand for real estate is influenced by the
A. number of real estate brokers in the area
B. ethnic makeup of neighborhoods
C. wage levels and employment opportunities in the area
D. price of new homes being built in the area versus the price of existing homes. -
CORRECT ANSWER C. wage levels and employment opportunities in the area
All of the following factors tend to affect supply EXCEPT
A. the labor force
B. construction costs
C. government controls
D. demographics - CORRECT ANSWER D. demographics
Real property is often referred to as a bundle of legal rights. Which of the following is NOT
among these rights?
A. Right of exclusion
B. Right to override local zoning
, C. Right of enjoyment
D. Right to sell or otherwise convey the property - CORRECT ANSWER B. Right to
override local zoning
A property is bordered by a small stream. The property ends
A. At the edge of the stream
B. at the center of the stream
C. five feet before the stream edge
D. at the mean high-water mark of the stream - CORRECT ANSWER B. at the center
of the stream
Oceanfront property ends at the
A. Waters edge
B. end of the dunes
C. low tide water mark
D. mean high-water mark - CORRECT ANSWER D. mean high-water mark
Which of the following would NOT be considered in determining if an item is a fixture?
A. Intent
B. Adaptability
C. Value
D. Method of attachment - CORRECT ANSWER C. Value
A purchaser of real estate learns that her ownership rights will continue forever and that no
other person has any ownership control over the property. This person owns a
A. Fee simple interest
B. life estate Pur Autre Vie
C. Determinable fee estate
D. fee simple subject to condition subsequent - CORRECT ANSWER A. Fee simple
interest
edition Exam Actual Questions and
CORRECT Answers
Which of the following loans exposes the lender to the greatest degree of risk?
A. FHA
B. Conventional, with 95% LTV
C. Construction
D. VA, with no down payment - CORRECT ANSWER C. Construction
A real estate sales contract becomes valid when
A. the written offer has been signed by both the offeror and the offeree
B. communication of acceptance is given to the offeror or offeror's agent
C. communication of acceptance is given to the offeree or offeree's agent
D. earnest money has been deposited into the escrow agent's trust account - CORRECT
ANSWER B. communication of acceptance is given to the offeror or offeror's agent
An active NC non-provisional broker who is affiliated with a real estate firm may perform
which of the following services as a sole proprietor without declaring himself or herself as
broker-in-charge?
A. List properties for sale
B. Establish and advertise a buyer referral service
C. Market and manage rental properties owned by other persons
D. Represent buyers as long as the broker does not solicit the business - CORRECT
ANSWER D. Represent buyers as long as the broker does not solicit the business
Which of the following BEST defines real estate?
A. Land and the air above it
B. Land and the buildings permanently affixed to it
,C. Land and all things permanently affixed to it
D. Land and the mineral rights in the land - CORRECT ANSWER C. Land and all
things permanently affixed to it
Which of the following is NOT a physical characteristic of land?
A. Indestructibility
B. Scarcity
C. Immobility
D. Uniqueness - CORRECT ANSWER B. Scarcity
In NC, the term provisional broker refers to
A. A REALTOR
B. a licensee who must operate under the supervision of a broker-in-charge
C. a licensee who must focus on a specialty area of real estate
D. an individual who has invested in real estate - CORRECT ANSWER B. a licensee
who must operate under the supervision of a broker-in-charge
Situs refers to
A. view from the property
B. improvements made to the building site
C. societal factors that are related to the location
D. immobility of real estate - CORRECT ANSWER C. societal factors that are related
to the location
Which of the following is NOT an economic characteristic of real estate?
A. Indestructibility
B. Scarcity
C. Permanence of improvement
D. Location - CORRECT ANSWER A. Indestructibility
,Which of the following physical and economic factors would a land developer take into
consideration when determining the optimum use of a parcel of land?
A. Transportation
B. Available natural resources
C. Contour and elevation
D. All of these - CORRECT ANSWER D. All of these
A theater or hotel would be classified under the real estate category of
A. Residential
B. Commercial
C. Agricultural
D. Industrial - CORRECT ANSWER B. Commercial
The demand for real estate is influenced by the
A. number of real estate brokers in the area
B. ethnic makeup of neighborhoods
C. wage levels and employment opportunities in the area
D. price of new homes being built in the area versus the price of existing homes. -
CORRECT ANSWER C. wage levels and employment opportunities in the area
All of the following factors tend to affect supply EXCEPT
A. the labor force
B. construction costs
C. government controls
D. demographics - CORRECT ANSWER D. demographics
Real property is often referred to as a bundle of legal rights. Which of the following is NOT
among these rights?
A. Right of exclusion
B. Right to override local zoning
, C. Right of enjoyment
D. Right to sell or otherwise convey the property - CORRECT ANSWER B. Right to
override local zoning
A property is bordered by a small stream. The property ends
A. At the edge of the stream
B. at the center of the stream
C. five feet before the stream edge
D. at the mean high-water mark of the stream - CORRECT ANSWER B. at the center
of the stream
Oceanfront property ends at the
A. Waters edge
B. end of the dunes
C. low tide water mark
D. mean high-water mark - CORRECT ANSWER D. mean high-water mark
Which of the following would NOT be considered in determining if an item is a fixture?
A. Intent
B. Adaptability
C. Value
D. Method of attachment - CORRECT ANSWER C. Value
A purchaser of real estate learns that her ownership rights will continue forever and that no
other person has any ownership control over the property. This person owns a
A. Fee simple interest
B. life estate Pur Autre Vie
C. Determinable fee estate
D. fee simple subject to condition subsequent - CORRECT ANSWER A. Fee simple
interest
