Real Estate Final Exam Questions With 100% Verified Correct Solutions.

Land Contract or Contract for Deed - correct answer A married couple purchases a home and lot at Lake Tillery from a local developer. They use a type of seller financing that gives the couple equitable title but does not give legal title until the loan is satisfied. This type of financing can be best referred to as: Submit the offer to the seller without any comment or suggestions - correct answer Broker Julio is serving as a Dual Agent with both parties' consent. The home is listed at $235,000.00. His buyer clients submit an offer on the property for $225,000.00. They also tell Julio that they'd go as high as $235,000.00 if they needed to, in order to get the home. The property is in a very popular, high demand area. Julio should: Yes, but only if the agent first obtains oral permission of both the buyer and seller to represent them as a dual agent and obtains a written dual agency agreement with both before any offer is presented. - correct answer The agent and buyer agree that the agent's firm will represent the buyer under an oral buyer agency agreement. The buyer soon expresses a particular interest in seeing a property listed with the agent's firm. The firm has a written listing agreement with the property's owner, but that agreement did not specifically authorize the firm to act as a dual agent. At this point, can the agent lawfully proceed to show the buyer the listed property in question without a written dual agency agreement from the buyer and seller? First substantial contact has not occurred and agency disclosure is not required. - correct answer Sally, a broker, is holding an open house. Betty Buyer enters and tours the house, observing all the features it has to offer. She thanks Sally for allowing her to see the listing and starts to leave. Which of the following statements is correct regarding this situation? Anita could become a dual agent but must obtain written consent from both buyer and seller to practice dual agency - correct answer Anita works for a firm that practices dual agency but not designated agency. Anita signs an Exclusive Buyer Agency Agreement to represent a buyer. The buyer subsequently becomes interested in one of the firm's listings that was listed by another agent. In this situation, Honesty - correct answer A broker who is working with a prospective buyer without any oral or written agreement to represent the buyer owes which of the following duties to the buyer under the common law? is affiliated with the listing firm - correct answer An agent is automatically considered to be an agent of the seller when the agent Neither I nor II - correct answer The amount of commission charged by a real estate broker is I. restricted by the Real Estate Commission II. negotiable between the buyer and the seller If the agent could discover a material defect by a reasonable inspection of the property, then he/she has a duty to disclose it to prospective purchasers - correct answer Which of the following statements best describes a listing agent's duty to disclose material defects in a listed property to prospective purchasers? when the agent and buyer have an oral non-exclusive buyer agency agreement for the buyer to see listed houses - correct answer An agent working with a prospective buyer must have the buyer sign a written buyer agency agreement in all the following scenarios EXCEPT the automatic renewal of the listing agreement upon expiration of its initial term - correct answer The standard Exclusive Right to Sell Listing Agreement form approved by the North Carolina Association of REALTORS® contains provisions addressing all of the following matters EXCEPT Open listing contract - correct answer An owner of a property wants to employ more than one listing broker at the same time but only be obligated to pay a brokerage commission to the broker who procures a buyer on terms acceptable to the owner. The owner would need to use which of the following types of listing contracts? a better offer from a third party - correct answer All of the following will terminate an offer EXCEPT allows the optionee to purchase the property on stated terms within the option period - correct answer An option to purchase real property delivery of the signed offer to the listing agent - correct answer All of the following actions constitute legal communication by a seller of his/her acceptance of a written offer to purchase real estate EXCEPT all of the above - correct answer What potential land use problems are an agent expected to recognize? Void, because listing agreements cannot auto renew. - correct answer A provisional broker and seller client both sign a written listing agreement that identifies the property being sold, clearly states the terms of the agreement, allows for payment to cooperating firms, and includes an expiration date. It also includes with the Firms' standard language that the agreement will renew itself for 90 days if neither party notifies the other of the intent to cancel. This agreement would be considered: Both I and II - correct answer Buyer offers to purchase Seller's house. Seller signs the offer but deletes a provision requiring the Seller to pay for an inspection of the electrical, plumbing, heating, and cooling systems, then returns the changed offer to the buyer. Which of the following is true? I. Seller's actions constitute a counteroffer II. Seller has rejected Buyer's offer can withdraw the offer because neither Jeff nor his buyers have been notified of the acceptance - correct answer A property is listed with Agent Maria of Mansions-R-Us Realty. On Friday afternoon Agent Jeff of Money Maker Realty, the buyer's agent, delivers an offer to purchase to Maria for the property. A provision in the offer stated it would be void if not accepted within 72 hours. The sellers accept the offer when Maria presents it on Friday evening. Maria puts the accepted offer in her briefcase and goes to the beach for the weekend without notifying Jeff or his buyers. Jeff's buyers decide to withdraw the offer on Sunday and notify Maria's broker-in-charge of this. Jeff's buyers specific performance - correct answer The legal remedy available to a purchaser of real property when the seller is in default on the sales contract and the purchaser still wants to acquire the property is called without reason before due diligence expires - correct answer A buyer may choose to terminate a N.C. Offer to Purchase and Contract and not be in breach of contract A)A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation B)If a law requires a signature, an electronic signature satisfies the law C)A record or signature may not be denied legal effect or enforceability solely because it is in electronic form - correct answer According to the Uniform Electronic Transaction Act (UETA): terminated automatically upon the death of the principal - correct answer An unmarried property owner signed a 90-day listing agreement with a broker. The owner was killed in an accident before the listing expired. Now the listing is price or terms that the seller may consider - correct answer When acting as a dual agent, a licensee has the authority to disclose ALL of the following EXCEPT earnest money - correct answer All of the following are considered essential elements of a contract EXCEPT The life tenant must pay ad valorem real property taxes during his/her ownership - correct answer Which of the following statements regarding conventional life estates is true? 5 days - correct answer When purchasing a time share from a registered time share developer, how long after signing a contract does the purchaser have to cancel the contract? A condominium unit owner's interest is considered to be a nonfreehold estate - correct answer All of the following statements regarding a condominium are true EXCEPT an easement in gross - correct answer Vision Cable Company was allowed by the developer to run its cable across the back of all 10 lots in Happy Meadows Subdivision. This is an example of the first day of the tax listing period (January 1) - correct answer The lien on real estate for ad valorem property taxes comes into existence on A lien for an unpaid special assessment is a lien against the property itself rather than against the property owner - correct answer Which of the following statements regarding special assessments is correct? Quitclaim deed - correct answer Which of the following methods of acquiring title is NOT an example of the transfer of land by involuntary alienation? Special Warranty Deed - correct answer The Grantor of a tract of land wishes to convey a deed that warrants the title to be free of any reasonably known defects or claims in order to be marketable for sale or trade from the time of the Grantors' possession. They don't want to create any warranties of the past. An attorney is most likely to recommend a: Able's use of the property was illegal - correct answer Able opened an antique shop in a single-family residential zone in direct violation of the zoning ordinance. Seven years later Able sells the property to Baker who operates the antique shop for another fifteen years. Which of the following statements is correct? variance - correct answer A developer has a cul-de-sac lot and he wants to build a house there; however, the front setback requirement under the county zoning ordinance would force the planned house to encroach on a flood hazard area. In order to comply with legal requirements for building the house on this lot, the developer must obtain from the county a an estate for years - correct answer A tenant signed a rental agreement with a property owner for the use and possession of a parcel of real property for the definite period of 45 days. This is an example of the tenant pays all or some of the leased property's costs (i.e., taxes, maintenance, utilities, etc.) - correct answer A key characteristic of a net lease is that Acceleration clause - correct answer Which of the following is the clause in a mortgage or deed of trust that permits a lender to call the entire unpaid mortgage balance due upon a borrower's default due to non-payment? Seek a deficiency judgment - correct answer The mortgagee foreclosed on property after the borrower defaulted on the loan payments. At the foreclosure sale the house sold for only $150,000. The unpaid balance of the loan at the time of foreclosure sale was $161,000. How will the lender most likely attempt to recover the $11,000 the borrower still owes? due-on-sale clause - correct answer The clause in a mortgage instrument that would prevent the assumption of the mortgage by a new purchaser of a mortgaged property is called the Grantor - correct answer Which of the following is required to sign a deed of trust? Veterans who received a dishonorable discharge may receive a VA loan - correct answer Which of the following is NOT true regarding VA financing for home loans? The initial interest rate is usually lower than a fixed rate loan - correct answer Which of the following statements regarding adjustable rate mortgages is true? 80% - correct answer When obtaining a conventional mortgage loan, a borrower is typically required to obtain private mortgage insurance when the loan-to-value ratio is more than A statement that FHA insured financing is available - correct answer A real estate agent placing an advertisement about a property for sale frequently includes in the ad certain information about available financing. Which of the following financing terms is NOT a "trigger term", as defined by Regulation Z, which will require full disclosure of all significant financing terms in such an advertisement? buydown mortgage loan - correct answer A first-time buyer has insufficient income to afford the mortgage payment on the new house she is interested in purchasing from a developer, but she has good income potential over the next few years. A lender offers to make the loan the buyer needs and to reduce the interest rate for the first three years if the developer will pay a lump sum amount at closing to the lender to offset the lender's loss of interest income. This type of mortgage loan is known as a (an) requires that real estate closings be conducted by an attorney - correct answer The Real Estate Settlement Procedures Act (RESPA) does all of the following EXCEPT: The FHA/VA loan addendum creates an appraisal contingency to the contract. - correct answer Which of the following statements about VA loans is correct? all of the above - correct answer The qualifications, limitations and conditions under which a VA loan may be guaranteed include Real Estate Settlement Procedures Act - correct answer The initial loan estimate, and final loan disclosure statement are required to be given to prospective borrowers according to which Federal Law? functional obsolescence - correct answer An appraiser performed an appraisal on a property. He gave one of his comparables a diminished value because it had a very outdated kitchen and old plumbing fixtures. This is an example of Analyzing and comparing the results obtained by the various approaches to value to estimate the value of a property being appraised - correct answer In real estate appraising, the term "reconciliation" refers to conformity - correct answer The economic principle which states that the maximum value of an improved property is realized when other properties in the immediate area have compatible and harmonious style is called Highest and best use - correct answer The economic principle that identifies every piece of real property as having a single use with the greatest rate of economic return is called: Cost approach - correct answer Which of the following approaches to value requires the value of the land to be calculated separately from the value of the improvements? The sales comparison approach - correct answer A provisional broker is listing a detached single-family home in a large neighborhood, and advising her clients on the best possible listing price. What approach would be the most reliable for her to use in performing a CMA in this scenario? Townships - correct answer In the government rectangular survey system of measurement, areas of 36 square miles are identified. Those areas are known as: