North Carolina Real Estate (State Only
Exam Review); Questions with Complete
Solutions
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
, North Carolina Real Estate (State Only
Exam Review); Questions with Complete
Solutions
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
, North Carolina Real Estate (State Only
Exam Review); Questions with Complete
Solutions
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.
Explanation
The license triggering event is earning compensation on behalf of another. John
will require an
active real estate license in order to earn compensation from the sale of
timeshare properties.
Which of the following statements regarding real estate sales contract is true?
, North Carolina Real Estate (State Only
Exam Review); Questions with Complete
Solutions
1. A provisional broker acting as the seller's agent is required to safeguard an
option money
check until effective and they must deliver it directly to the seller.
2. An agent representing a buyer must submit an offer to purchase to the seller
or sellers agent
immediately or no later than 7 days.
3. When earnest money is paid with an effective contract it must be deposited
within 5 banking
days of receipt.
4. A broker is not permitted to accept an earnest money deposit if it is tender in
cash. ✔✔1.
Option fee and due diligence fee checks are made payable to the seller and
delivered once the
contract becomes effective. Offers and contracts must be delivered within five
days. Earnest
Exam Review); Questions with Complete
Solutions
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
, North Carolina Real Estate (State Only
Exam Review); Questions with Complete
Solutions
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
, North Carolina Real Estate (State Only
Exam Review); Questions with Complete
Solutions
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.
Explanation
The license triggering event is earning compensation on behalf of another. John
will require an
active real estate license in order to earn compensation from the sale of
timeshare properties.
Which of the following statements regarding real estate sales contract is true?
, North Carolina Real Estate (State Only
Exam Review); Questions with Complete
Solutions
1. A provisional broker acting as the seller's agent is required to safeguard an
option money
check until effective and they must deliver it directly to the seller.
2. An agent representing a buyer must submit an offer to purchase to the seller
or sellers agent
immediately or no later than 7 days.
3. When earnest money is paid with an effective contract it must be deposited
within 5 banking
days of receipt.
4. A broker is not permitted to accept an earnest money deposit if it is tender in
cash. ✔✔1.
Option fee and due diligence fee checks are made payable to the seller and
delivered once the
contract becomes effective. Offers and contracts must be delivered within five
days. Earnest
