NC Post-Licensing 302 - Unit Test
Questions With Correct Answers
In ||a ||real ||estate ||transaction, ||which ||of ||the ||following ||is ||an ||example ||of ||consideration? ||- ||
CORRECT ||ANSWER✔✔-The ||seller's ||promise ||to ||sell
Your ||automatic ||check ||writer ||wrote ||a ||check ||for ||$51.50, ||but ||your ||printer ||ran ||out ||of ||
toner, ||so ||you ||had ||to ||fill ||in ||the ||handwritten ||line. ||In ||a ||hurry, ||you ||accidentally ||wrote,
||"Fifty-one ||dollars ||and ||no/100 ||cents." ||Which ||amount ||takes ||priority? ||- ||CORRECT ||
ANSWER✔✔-The ||handwritten ||number
Morgan ||has ||agreed ||to ||sell ||his ||home ||to ||Dierks, ||and ||they've ||signed ||a ||contract. ||Which ||of
||these ||actions ||changes ||the ||contract ||from ||executory ||to ||executed? ||- ||CORRECT ||
ANSWER✔✔-Dierks' ||lender ||funded ||the ||loan, ||and ||closing ||took ||place
_______ ||is ||an ||example ||of ||circumstances ||that ||are ||beyond ||the ||buyers' ||control, ||meaning ||
they ||can't ||practically ||do ||what ||they've ||agreed ||to ||do, ||and ||the ||offer ||terminates. ||- ||
CORRECT ||ANSWER✔✔-Destruction ||of ||property
If ||a ||contract ||is ||for ||an ||illegal ||purpose, ||it's ||______ ||- ||CORRECT ||ANSWER✔✔-Void
Which ||of ||the ||following ||is ||NOT ||a ||valid ||reason ||for ||an ||offer ||termination ||in ||North ||
Carolina? ||- ||CORRECT ||ANSWER✔✔-Improper ||forms
Which ||offer ||would ||be ||the ||most ||appealing ||to ||a ||seller? ||- ||CORRECT ||ANSWER✔✔-It ||
depends ||on ||the ||seller's ||needs ||and ||motivations
Kirk ||and ||his ||cousin ||Dewey ||decided ||to ||buy ||a ||vacation ||home. ||They ||entered ||into ||a ||
contract ||with ||the ||seller, ||Crystal. ||Before ||finalizing ||the ||sale, ||Dewey ||wanted ||out, ||but ||he ||
doesn't ||want ||to ||let ||his ||cousin ||down. ||So ||instead ||of ||pulling ||out ||altogether, ||Dewey ||
,convinced ||his ||son ||to ||replace ||him ||in ||the ||purchase ||contract. ||Kirk ||and ||Crystal ||agreed ||to ||
the ||substitution, ||and ||Dewey ||was ||released ||from ||all ||his ||obligations ||under ||the ||contract. ||
Dewey's ||son ||is ||now ||the ||contracting ||party. ||What's ||this ||an ||example ||of? ||- ||CORRECT ||
ANSWER✔✔-Novation
What ||type ||of ||language ||should ||be ||used ||to ||write ||contracts? ||- ||CORRECT ||ANSWER✔✔-Plain
||language
When ||does ||offer ||and ||acceptance ||occur? ||- ||CORRECT ||ANSWER✔✔-When ||both ||parties ||sign
||a ||contract ||with ||the ||full ||understanding ||of ||the ||terms.
Sylvan, ||the ||seller, ||and ||Eric, ||the ||buyer, ||have ||signed ||an ||option ||agreement, ||which ||is ||an ||
offer ||to ||purchase ||a ||specific ||piece ||of ||real ||estate ||without ||the ||obligation ||to ||buy ||it. ||Until ||
Eric ||exercises ||his ||option ||to ||buy, ||only ||Sylvan ||is ||bound ||by ||the ||option ||agreement; ||he ||may
||not ||sell ||the ||property ||to ||anyone ||else ||during ||the ||option ||period. ||What ||type ||of ||contract ||
is ||this? ||- ||CORRECT ||ANSWER✔✔-Unilateral
Three ||of ||these ||statements ||about ||interpreting ||contracts ||are ||true, ||and ||one ||is ||not. ||Which ||
statement ||is ||FALSE? ||- ||CORRECT ||ANSWER✔✔-A ||handwritten ||insertion ||can ||be ||canceled ||
out ||by ||typing ||over ||it.
What ||is ||wrong ||with ||this ||statement: ||"Handwritten ||information ||on ||a ||contract ||is ||not ||
legally ||binding. ||All ||insertions ||must ||be ||typed."? ||- ||CORRECT ||ANSWER✔✔-Insertions ||do ||not
||have ||to ||be ||typed ||to ||be ||legally ||binding.
Desmond ||has ||a ||signed ||listing ||agreement ||with ||his ||clients, ||the ||Harpers. ||In ||exchange ||for ||
helping ||the ||Harpers ||list, ||market, ||and ||sell ||their ||home, ||the ||Harpers ||have ||agreed ||to ||pay ||
Desmond ||a ||commission. ||What ||type ||of ||agreement ||do ||Desmond ||and ||the ||Harpers ||have? ||-
||CORRECT ||ANSWER✔✔-Bilateral
The ||Nettles ||have ||accepted ||the ||Briars' ||purchase ||offer, ||and ||both ||parties ||have ||signed ||the ||
sales ||contract. ||The ||funds, ||and ||the ||title, ||should ||transfer ||in ||a ||matter ||of ||days, ||but ||
,otherwise ||the ||all ||elements ||and ||terms ||of ||the ||contract ||have ||been ||met. ||What ||type ||of ||
contract ||do ||the ||Nettles ||and ||the ||Briars ||have? ||- ||CORRECT ||ANSWER✔✔-Executory
Ruthie ||is ||explaining ||the ||termination ||option ||to ||her ||buyer ||client. ||How ||would ||she ||explain ||
that ||"time ||is ||of ||the ||essence" ||is ||for ||the ||discharge ||under ||operation ||of ||law ||option? ||- ||
CORRECT ||ANSWER✔✔-"This ||means ||that ||if ||the ||seller ||doesn't ||decide ||by ||the ||deadline, ||the
||buyer ||is ||no ||longer ||held ||to ||the ||contract"
Why ||do ||you ||think ||that ||handwritten ||changes ||take ||priority ||over ||typed ||changes? ||- ||
CORRECT ||ANSWER✔✔-It's ||less ||likely ||to ||be ||done ||inadvertently
Breanna ||signed ||a ||purchase ||offer ||stating ||she'd ||buy ||Kathy's ||home ||for ||$150,000. ||Kathy ||
rejected ||that ||offer ||but ||said ||she'd ||sell ||it ||to ||Breanna ||for ||$200,000. ||Breanna ||agreed ||to ||
these ||terms, ||and ||they ||added ||their ||signatures. ||Which ||of ||the ||following ||statements ||is ||
correct? ||- ||CORRECT ||ANSWER✔✔-Breanna ||accepted ||the ||offer ||Kathy ||made
Rex ||needs ||to ||handle ||some ||money ||he ||acquired ||during ||an ||"unsavory" ||business ||deal. ||He ||
agrees ||to ||sign ||his ||boat ||over ||to ||his ||colleague, ||Ben, ||if ||Ben ||can ||launder ||the ||money ||and ||
return ||it ||to ||Rex ||as ||part ||of ||a ||legal ||business ||dealing. ||What ||kind ||of ||contract ||do ||Rex ||and ||
Ben ||have? ||- ||CORRECT ||ANSWER✔✔-Void
Which ||of ||the ||following ||is ||a ||legitimate ||reason ||to ||counter ||an ||offer? ||- ||CORRECT ||
ANSWER✔✔-Price
When ||a ||seller's ||agent ||receives ||a ||written ||offer ||from ||a ||prospective ||buyer, ||how ||must ||it ||be
||handled? ||- ||CORRECT ||ANSWER✔✔-It ||must ||be ||submitted ||promptly ||to ||the ||seller
Which ||of ||these ||sentences ||accurately ||lists ||rules ||for ||interpreting ||a ||contract? ||- ||CORRECT ||
ANSWER✔✔-Typed ||text ||takes ||precedence ||over ||pre-printed ||text, ||and ||spelled-out ||numbers
||(e.g. ||four) ||take ||precedence ||over ||numerals ||(e.g. ||5)
, Zelda ||received ||an ||offer ||from ||Matthew ||for ||her ||house ||on ||Monday. ||The ||offer ||is ||set ||to ||
expire ||Wednesday. ||After ||a ||sleepless ||night ||on ||Monday, ||Matthew ||told ||his ||broker ||to ||
revoke ||the ||offer. ||Zelda ||hadn't ||accepted ||the ||offer ||as ||of ||Tuesday ||night. ||What ||happens ||to ||
Matthew's ||offer? ||- ||CORRECT ||ANSWER✔✔-The ||offer ||is ||terminated ||under ||contract ||
revocation ||laws
Kent ||has ||received ||an ||offer ||for ||his ||house. ||What ||is ||the ||best ||solution ||if ||there ||are ||some ||
offer ||terms ||he's ||hesitant ||to ||accept? ||- ||CORRECT ||ANSWER✔✔-Reject ||the ||offer ||but ||reply ||
with ||a ||form ||that ||outlines ||acceptable ||conditions
When ||does ||substantial ||performance ||of ||a ||contract ||occur? ||- ||CORRECT ||ANSWER✔✔-One ||
party ||has ||met ||most ||but ||not ||all ||of ||the ||terms ||specified ||in ||the ||contract, ||and ||may ||be ||
required ||to ||pay ||damages ||for ||the ||terms ||not ||met
Thad ||received ||multiple ||offers ||on ||his ||property ||and ||is ||reviewing ||them ||with ||his ||agent ||
Nora. ||All ||of ||the ||offers ||have ||at ||least ||one ||contingency. ||Nora ||recommends ||that ||they ||reject
||the ||second ||offer, ||because ||it ||has ||a ||contingency ||that's ||generally ||the ||most ||risky. ||Which ||
contingency ||is ||that? ||- ||CORRECT ||ANSWER✔✔-Home ||sale
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
What ||does ||the ||parol ||evidence ||rule ||say ||about ||contracts? ||- ||CORRECT ||ANSWER✔✔-The ||
terms ||agreed ||to ||in ||a ||written ||contract ||are ||the ||only ||terms ||relating ||to ||that ||contract
Barney ||and ||Zack ||signed ||a ||sales ||contract. ||Zack ||changed ||the ||down ||payment ||amount ||from
||$2,000 ||to ||$5,000 ||using ||a ||software ||program. ||Barney ||then ||wrote ||$4,500 ||by ||hand ||on ||a ||
printed ||copy ||and ||sent ||it ||back ||to ||Zack. ||What ||is ||the ||amount ||of ||the ||down ||payment ||since
||both ||parties ||have ||signed? ||- ||CORRECT ||ANSWER✔✔-$4,500
Questions With Correct Answers
In ||a ||real ||estate ||transaction, ||which ||of ||the ||following ||is ||an ||example ||of ||consideration? ||- ||
CORRECT ||ANSWER✔✔-The ||seller's ||promise ||to ||sell
Your ||automatic ||check ||writer ||wrote ||a ||check ||for ||$51.50, ||but ||your ||printer ||ran ||out ||of ||
toner, ||so ||you ||had ||to ||fill ||in ||the ||handwritten ||line. ||In ||a ||hurry, ||you ||accidentally ||wrote,
||"Fifty-one ||dollars ||and ||no/100 ||cents." ||Which ||amount ||takes ||priority? ||- ||CORRECT ||
ANSWER✔✔-The ||handwritten ||number
Morgan ||has ||agreed ||to ||sell ||his ||home ||to ||Dierks, ||and ||they've ||signed ||a ||contract. ||Which ||of
||these ||actions ||changes ||the ||contract ||from ||executory ||to ||executed? ||- ||CORRECT ||
ANSWER✔✔-Dierks' ||lender ||funded ||the ||loan, ||and ||closing ||took ||place
_______ ||is ||an ||example ||of ||circumstances ||that ||are ||beyond ||the ||buyers' ||control, ||meaning ||
they ||can't ||practically ||do ||what ||they've ||agreed ||to ||do, ||and ||the ||offer ||terminates. ||- ||
CORRECT ||ANSWER✔✔-Destruction ||of ||property
If ||a ||contract ||is ||for ||an ||illegal ||purpose, ||it's ||______ ||- ||CORRECT ||ANSWER✔✔-Void
Which ||of ||the ||following ||is ||NOT ||a ||valid ||reason ||for ||an ||offer ||termination ||in ||North ||
Carolina? ||- ||CORRECT ||ANSWER✔✔-Improper ||forms
Which ||offer ||would ||be ||the ||most ||appealing ||to ||a ||seller? ||- ||CORRECT ||ANSWER✔✔-It ||
depends ||on ||the ||seller's ||needs ||and ||motivations
Kirk ||and ||his ||cousin ||Dewey ||decided ||to ||buy ||a ||vacation ||home. ||They ||entered ||into ||a ||
contract ||with ||the ||seller, ||Crystal. ||Before ||finalizing ||the ||sale, ||Dewey ||wanted ||out, ||but ||he ||
doesn't ||want ||to ||let ||his ||cousin ||down. ||So ||instead ||of ||pulling ||out ||altogether, ||Dewey ||
,convinced ||his ||son ||to ||replace ||him ||in ||the ||purchase ||contract. ||Kirk ||and ||Crystal ||agreed ||to ||
the ||substitution, ||and ||Dewey ||was ||released ||from ||all ||his ||obligations ||under ||the ||contract. ||
Dewey's ||son ||is ||now ||the ||contracting ||party. ||What's ||this ||an ||example ||of? ||- ||CORRECT ||
ANSWER✔✔-Novation
What ||type ||of ||language ||should ||be ||used ||to ||write ||contracts? ||- ||CORRECT ||ANSWER✔✔-Plain
||language
When ||does ||offer ||and ||acceptance ||occur? ||- ||CORRECT ||ANSWER✔✔-When ||both ||parties ||sign
||a ||contract ||with ||the ||full ||understanding ||of ||the ||terms.
Sylvan, ||the ||seller, ||and ||Eric, ||the ||buyer, ||have ||signed ||an ||option ||agreement, ||which ||is ||an ||
offer ||to ||purchase ||a ||specific ||piece ||of ||real ||estate ||without ||the ||obligation ||to ||buy ||it. ||Until ||
Eric ||exercises ||his ||option ||to ||buy, ||only ||Sylvan ||is ||bound ||by ||the ||option ||agreement; ||he ||may
||not ||sell ||the ||property ||to ||anyone ||else ||during ||the ||option ||period. ||What ||type ||of ||contract ||
is ||this? ||- ||CORRECT ||ANSWER✔✔-Unilateral
Three ||of ||these ||statements ||about ||interpreting ||contracts ||are ||true, ||and ||one ||is ||not. ||Which ||
statement ||is ||FALSE? ||- ||CORRECT ||ANSWER✔✔-A ||handwritten ||insertion ||can ||be ||canceled ||
out ||by ||typing ||over ||it.
What ||is ||wrong ||with ||this ||statement: ||"Handwritten ||information ||on ||a ||contract ||is ||not ||
legally ||binding. ||All ||insertions ||must ||be ||typed."? ||- ||CORRECT ||ANSWER✔✔-Insertions ||do ||not
||have ||to ||be ||typed ||to ||be ||legally ||binding.
Desmond ||has ||a ||signed ||listing ||agreement ||with ||his ||clients, ||the ||Harpers. ||In ||exchange ||for ||
helping ||the ||Harpers ||list, ||market, ||and ||sell ||their ||home, ||the ||Harpers ||have ||agreed ||to ||pay ||
Desmond ||a ||commission. ||What ||type ||of ||agreement ||do ||Desmond ||and ||the ||Harpers ||have? ||-
||CORRECT ||ANSWER✔✔-Bilateral
The ||Nettles ||have ||accepted ||the ||Briars' ||purchase ||offer, ||and ||both ||parties ||have ||signed ||the ||
sales ||contract. ||The ||funds, ||and ||the ||title, ||should ||transfer ||in ||a ||matter ||of ||days, ||but ||
,otherwise ||the ||all ||elements ||and ||terms ||of ||the ||contract ||have ||been ||met. ||What ||type ||of ||
contract ||do ||the ||Nettles ||and ||the ||Briars ||have? ||- ||CORRECT ||ANSWER✔✔-Executory
Ruthie ||is ||explaining ||the ||termination ||option ||to ||her ||buyer ||client. ||How ||would ||she ||explain ||
that ||"time ||is ||of ||the ||essence" ||is ||for ||the ||discharge ||under ||operation ||of ||law ||option? ||- ||
CORRECT ||ANSWER✔✔-"This ||means ||that ||if ||the ||seller ||doesn't ||decide ||by ||the ||deadline, ||the
||buyer ||is ||no ||longer ||held ||to ||the ||contract"
Why ||do ||you ||think ||that ||handwritten ||changes ||take ||priority ||over ||typed ||changes? ||- ||
CORRECT ||ANSWER✔✔-It's ||less ||likely ||to ||be ||done ||inadvertently
Breanna ||signed ||a ||purchase ||offer ||stating ||she'd ||buy ||Kathy's ||home ||for ||$150,000. ||Kathy ||
rejected ||that ||offer ||but ||said ||she'd ||sell ||it ||to ||Breanna ||for ||$200,000. ||Breanna ||agreed ||to ||
these ||terms, ||and ||they ||added ||their ||signatures. ||Which ||of ||the ||following ||statements ||is ||
correct? ||- ||CORRECT ||ANSWER✔✔-Breanna ||accepted ||the ||offer ||Kathy ||made
Rex ||needs ||to ||handle ||some ||money ||he ||acquired ||during ||an ||"unsavory" ||business ||deal. ||He ||
agrees ||to ||sign ||his ||boat ||over ||to ||his ||colleague, ||Ben, ||if ||Ben ||can ||launder ||the ||money ||and ||
return ||it ||to ||Rex ||as ||part ||of ||a ||legal ||business ||dealing. ||What ||kind ||of ||contract ||do ||Rex ||and ||
Ben ||have? ||- ||CORRECT ||ANSWER✔✔-Void
Which ||of ||the ||following ||is ||a ||legitimate ||reason ||to ||counter ||an ||offer? ||- ||CORRECT ||
ANSWER✔✔-Price
When ||a ||seller's ||agent ||receives ||a ||written ||offer ||from ||a ||prospective ||buyer, ||how ||must ||it ||be
||handled? ||- ||CORRECT ||ANSWER✔✔-It ||must ||be ||submitted ||promptly ||to ||the ||seller
Which ||of ||these ||sentences ||accurately ||lists ||rules ||for ||interpreting ||a ||contract? ||- ||CORRECT ||
ANSWER✔✔-Typed ||text ||takes ||precedence ||over ||pre-printed ||text, ||and ||spelled-out ||numbers
||(e.g. ||four) ||take ||precedence ||over ||numerals ||(e.g. ||5)
, Zelda ||received ||an ||offer ||from ||Matthew ||for ||her ||house ||on ||Monday. ||The ||offer ||is ||set ||to ||
expire ||Wednesday. ||After ||a ||sleepless ||night ||on ||Monday, ||Matthew ||told ||his ||broker ||to ||
revoke ||the ||offer. ||Zelda ||hadn't ||accepted ||the ||offer ||as ||of ||Tuesday ||night. ||What ||happens ||to ||
Matthew's ||offer? ||- ||CORRECT ||ANSWER✔✔-The ||offer ||is ||terminated ||under ||contract ||
revocation ||laws
Kent ||has ||received ||an ||offer ||for ||his ||house. ||What ||is ||the ||best ||solution ||if ||there ||are ||some ||
offer ||terms ||he's ||hesitant ||to ||accept? ||- ||CORRECT ||ANSWER✔✔-Reject ||the ||offer ||but ||reply ||
with ||a ||form ||that ||outlines ||acceptable ||conditions
When ||does ||substantial ||performance ||of ||a ||contract ||occur? ||- ||CORRECT ||ANSWER✔✔-One ||
party ||has ||met ||most ||but ||not ||all ||of ||the ||terms ||specified ||in ||the ||contract, ||and ||may ||be ||
required ||to ||pay ||damages ||for ||the ||terms ||not ||met
Thad ||received ||multiple ||offers ||on ||his ||property ||and ||is ||reviewing ||them ||with ||his ||agent ||
Nora. ||All ||of ||the ||offers ||have ||at ||least ||one ||contingency. ||Nora ||recommends ||that ||they ||reject
||the ||second ||offer, ||because ||it ||has ||a ||contingency ||that's ||generally ||the ||most ||risky. ||Which ||
contingency ||is ||that? ||- ||CORRECT ||ANSWER✔✔-Home ||sale
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
What ||does ||the ||parol ||evidence ||rule ||say ||about ||contracts? ||- ||CORRECT ||ANSWER✔✔-The ||
terms ||agreed ||to ||in ||a ||written ||contract ||are ||the ||only ||terms ||relating ||to ||that ||contract
Barney ||and ||Zack ||signed ||a ||sales ||contract. ||Zack ||changed ||the ||down ||payment ||amount ||from
||$2,000 ||to ||$5,000 ||using ||a ||software ||program. ||Barney ||then ||wrote ||$4,500 ||by ||hand ||on ||a ||
printed ||copy ||and ||sent ||it ||back ||to ||Zack. ||What ||is ||the ||amount ||of ||the ||down ||payment ||since
||both ||parties ||have ||signed? ||- ||CORRECT ||ANSWER✔✔-$4,500
