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NC Post Licensing 303 Questions with
Detailed Verified Answers
Commercial purchase contract Ans: vary widely, inspections or due
diligent are key, no standard contract
Commercial Due Diligence Ans: Free look, no risk, determined by buyer
and seller
BPO-Broker Price Opinion Analysis Ans: Contains a market analysis and
derives value from capitalization rates
Capitalization formula Ans: I/R*V
Value=NOI/Rate
Potential Gross Income Ans: Vacancy Collection losses
Additional income
Effective gross income Ans: Operating expenses
Net operating income Ans: Debt service(mortgage), Capital
expenditures reserves commissions
Ground Lease Ans: Dirt owners dream, common arrangements, costals,
lake, reservations, hong kong is the world's largest
Common Ground Lease Provision Ans: Often Allowed construction of a
building typically in the lease get to deduct rent as business expenses
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Full-Service Lease Ans: Lease includes services, base rent + prorated
expenses + utilities & services, lessor pays expenses, but they are shared
among tenants, rent is usually higher than other leases, CAMs
CAMs Ans: Common area maintenance charges shared by all tenants
Landlord Ans: Lessor of the property; agents that have actual or
apparent authority over the property
Smoke & Carbon Monoxide Detectors Ans: Smoke Mandatory, Carbon
attached garage and fossil fuel appliances, landlord must install 10yr
lithium batteries or hard wire; tenant replace batteries during the lease
Constructive Eviction Ans: Landlord Breach-Failure to maintain; Heath
& safety. Tenant must move and relinquish possession.
Actual Eviction Ans: Tenant Breach-Breach of lease; usually failure to
pay rent. Landlord must file a summary ejectment.
Magistrate Handle Evictions Ans: Right to hearing in 7 days, decision on
day of hearing, writ issued within 5 days of hearing, summary ejectment
proceeding
Tenant Security Deposit Act Ans: Trust acct or bond;
Wkly-2 weeks;mthly-1 1/2 mths; longer-2 mths
Commercial vs. residential deposits Ans: Residential based upon lease
term. Commercial deposits are unregulated
Proper uses of security deposits Ans: Nonpymt of rent; can use for
damage; unfulfilled lease term;unpaid bills that create a lien on the
property; Eviction cost
Vacation Rental Ans: Residential property, vacation leisure or recreation
purpose, less than 90 days, renter has permanent residence
NC Post Licensing 303 Questions with
Detailed Verified Answers
Commercial purchase contract Ans: vary widely, inspections or due
diligent are key, no standard contract
Commercial Due Diligence Ans: Free look, no risk, determined by buyer
and seller
BPO-Broker Price Opinion Analysis Ans: Contains a market analysis and
derives value from capitalization rates
Capitalization formula Ans: I/R*V
Value=NOI/Rate
Potential Gross Income Ans: Vacancy Collection losses
Additional income
Effective gross income Ans: Operating expenses
Net operating income Ans: Debt service(mortgage), Capital
expenditures reserves commissions
Ground Lease Ans: Dirt owners dream, common arrangements, costals,
lake, reservations, hong kong is the world's largest
Common Ground Lease Provision Ans: Often Allowed construction of a
building typically in the lease get to deduct rent as business expenses
, Page | 2
Full-Service Lease Ans: Lease includes services, base rent + prorated
expenses + utilities & services, lessor pays expenses, but they are shared
among tenants, rent is usually higher than other leases, CAMs
CAMs Ans: Common area maintenance charges shared by all tenants
Landlord Ans: Lessor of the property; agents that have actual or
apparent authority over the property
Smoke & Carbon Monoxide Detectors Ans: Smoke Mandatory, Carbon
attached garage and fossil fuel appliances, landlord must install 10yr
lithium batteries or hard wire; tenant replace batteries during the lease
Constructive Eviction Ans: Landlord Breach-Failure to maintain; Heath
& safety. Tenant must move and relinquish possession.
Actual Eviction Ans: Tenant Breach-Breach of lease; usually failure to
pay rent. Landlord must file a summary ejectment.
Magistrate Handle Evictions Ans: Right to hearing in 7 days, decision on
day of hearing, writ issued within 5 days of hearing, summary ejectment
proceeding
Tenant Security Deposit Act Ans: Trust acct or bond;
Wkly-2 weeks;mthly-1 1/2 mths; longer-2 mths
Commercial vs. residential deposits Ans: Residential based upon lease
term. Commercial deposits are unregulated
Proper uses of security deposits Ans: Nonpymt of rent; can use for
damage; unfulfilled lease term;unpaid bills that create a lien on the
property; Eviction cost
Vacation Rental Ans: Residential property, vacation leisure or recreation
purpose, less than 90 days, renter has permanent residence
