NC Post-Licensing 302 - Unit Test Questions and
Answers| Guaranteed Pass
In a real estate transaction, which of the following is an example of
consideration?
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?
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?
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.
Destruction of property
,If a contract is for an illegal purpose, it's ______
Void
Which of the following is NOT a valid reason for an offer termination in North
Carolina?
Improper forms
Which offer would be the most appealing to a seller?
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?
Novation
What type of language should be used to write contracts?
Plain language
,When does offer and acceptance occur?
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?
Unilateral
Three of these statements about interpreting contracts are true, and one is not.
Which statement is FALSE?
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."?
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?
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?
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?
"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?
It's less likely to be done inadvertently
Answers| Guaranteed Pass
In a real estate transaction, which of the following is an example of
consideration?
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?
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?
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.
Destruction of property
,If a contract is for an illegal purpose, it's ______
Void
Which of the following is NOT a valid reason for an offer termination in North
Carolina?
Improper forms
Which offer would be the most appealing to a seller?
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?
Novation
What type of language should be used to write contracts?
Plain language
,When does offer and acceptance occur?
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?
Unilateral
Three of these statements about interpreting contracts are true, and one is not.
Which statement is FALSE?
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."?
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?
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?
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?
"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?
It's less likely to be done inadvertently
