North Carolina Real Estate (State Only Exam Review) Questions and Answers 100% Pass

Which of the following statements is true regarding Ad Valorem taxation in North Carolina? 1. Real property is taxed according to its most recent sale price. 2. The Machinery Act requires reassessment tax purposes every 4 years. 3. Real property taxes and special assessments constitute an involuntary lien against property on January 1st of the next year. 4. Tax rates are effective until the next revaluation year. 3. Real property taxes and special assessments constitute an involuntary lien against property on January 1st of the text year Explanation Real property is taxed according to its assessed value, not sale price. The Machinery Act requires that properties be assessed at least once every 8 years (octennial appraisal). Tax rates can be changed every year and not set by the Machinery Act, rather by budget of the municipality. John recently retired and moved to a coastal community located in North Carolina. He decided to seek opportunities to supplement his retirement income by responding to an advertisement to become a timeshare salesman. John is told by the developer no license is required to sell a timeshare as he will be paid a flat fee for each timeshare sold is the developer correct? 1. No. In order to sell time shares an individual will need to obtain a timeshare sales license. 2. No. In order to sell timeshares an individual will need to obtain a North Carolina real estate license. 3. Yes. So long as an individual is not paid a percentage based commission there is no requirement to obtain a time share salesman license. 4. Yes. Timeshare sales fall under vacation property sales and therefore are exempt from the typical licensing requirements. 2. No. In order to sell timeshares an individual will need to obtain a North Carolina real estate license.