NC 302 POST LICENSING EXAM CONTRACTS
AND CLOSING NEWEST 2025-2026 LATEST
EXAM VERSION
Buyer's doc preps: - CORRECT ANSWER✔️ Financing docs
Title insurance policy
Property insurance policy
Wood infestation termite report
Property Survey
Conducting the closing - CORRECT ANSWER✔️ Review the
docs -- AGENT TO REVIEW CLOSING DISCLOSURE
Sign the docs
Record the transaction
Fund the transaction
Report distributions to IRS (1099)
Good Funds Act - CORRECT ANSWER✔️ No distributions until
recording
Not the same as closing or settlement
Must verify all funds over 5k
Transfer of Funds - CORRECT ANSWER✔️ Funds may be
transferred from the brokerage escrow account to the settlement
agent (attorney) no more than 10 days prior to the anticipated
settlement date
RESPA - CORRECT ANSWER✔️ Real estate settlement
,procedures act Enacted in 1974
800+ pages
Two purposes in mind
DISCLOSURE
ELIMINATE KICKBACKS
Enforced by CFPB
1-4 Residential Property Disclosure (Written to eliminate
kickbacks)
RESPA applies to federally related mortgage loans
Does not apply to cash, vacant land, commercial transactions,
seller carrybacks
Initial Application Disclosures: - CORRECT ANSWER✔️ Within 3
days of loan application, borrower gets:
Loan Estimate:
Loan costs
Required APR Info (TILA)
Consumer Settlement Costs Booklet
"Your home loan toolkit"
Who is responsible for loan estimate: - CORRECT ANSWER✔️
LENDERS are responsible for knowing which transactions are
covered
Real Estate Brokers are NOT liable for the accuracy of a loan
estimate but should have a GENERAL understanding
An application occurs when: - CORRECT ANSWER✔️ Borrower
has provided: Legal name
Gross income
SSN for credit report
,Property address
Estimate of property value (purchase price on the contract)
Amount of mortgage loan requested
Prior to the loan estimate, the ONLY charge a lender can make is
for a: - CORRECT ANSWER✔️ credit report
Permissible Variations: - CORRECT ANSWER✔️ No Variation:
Lender fees
Services chosen by lender
10% variation
Settlement agent fees
Recording fees
Unlimited Variation
Prepaid interest
Property insurance
Escrows & impounds
3rd party services
Other RESPA Provisions: - CORRECT ANSWER✔️ **Escrow
Account Restrictions
Use of a closing disclosure
Kickbacks between settlement service providers
As far as RESPA is concerned, anything of value to settlement
service providers (does NOT have to be money) - CORRECT
ANSWER✔️ Banking services
Open house services
Home warranty
, Appraisal company
Classifying contracts:
Express & Implied - CORRECT ANSWER✔️ Express: Bilateral,
executed
Intentions stated (orally or written)
Implied: Unilateral, executory
Inferred from conduct or actions
Classifying contracts:
Bilateral & Unilateral - CORRECT ANSWER✔️ Bilateral - two
promises (both parties bound to do something)
Unilateral - Only one party is bound
Classifying Contracts:
Executed & Executory - CORRECT ANSWER✔️ Executed - All
tasks performed (After closing)
Executory - tasks remaining to be done (before closing)
Statute of Frauds - CORRECT ANSWER✔️ Everything needs to
be in writing
DREAM OILS (Statute of Frauds) - CORRECT ANSWER✔️
Deeds
Restrictive covenants
Easements
Assignments
AND CLOSING NEWEST 2025-2026 LATEST
EXAM VERSION
Buyer's doc preps: - CORRECT ANSWER✔️ Financing docs
Title insurance policy
Property insurance policy
Wood infestation termite report
Property Survey
Conducting the closing - CORRECT ANSWER✔️ Review the
docs -- AGENT TO REVIEW CLOSING DISCLOSURE
Sign the docs
Record the transaction
Fund the transaction
Report distributions to IRS (1099)
Good Funds Act - CORRECT ANSWER✔️ No distributions until
recording
Not the same as closing or settlement
Must verify all funds over 5k
Transfer of Funds - CORRECT ANSWER✔️ Funds may be
transferred from the brokerage escrow account to the settlement
agent (attorney) no more than 10 days prior to the anticipated
settlement date
RESPA - CORRECT ANSWER✔️ Real estate settlement
,procedures act Enacted in 1974
800+ pages
Two purposes in mind
DISCLOSURE
ELIMINATE KICKBACKS
Enforced by CFPB
1-4 Residential Property Disclosure (Written to eliminate
kickbacks)
RESPA applies to federally related mortgage loans
Does not apply to cash, vacant land, commercial transactions,
seller carrybacks
Initial Application Disclosures: - CORRECT ANSWER✔️ Within 3
days of loan application, borrower gets:
Loan Estimate:
Loan costs
Required APR Info (TILA)
Consumer Settlement Costs Booklet
"Your home loan toolkit"
Who is responsible for loan estimate: - CORRECT ANSWER✔️
LENDERS are responsible for knowing which transactions are
covered
Real Estate Brokers are NOT liable for the accuracy of a loan
estimate but should have a GENERAL understanding
An application occurs when: - CORRECT ANSWER✔️ Borrower
has provided: Legal name
Gross income
SSN for credit report
,Property address
Estimate of property value (purchase price on the contract)
Amount of mortgage loan requested
Prior to the loan estimate, the ONLY charge a lender can make is
for a: - CORRECT ANSWER✔️ credit report
Permissible Variations: - CORRECT ANSWER✔️ No Variation:
Lender fees
Services chosen by lender
10% variation
Settlement agent fees
Recording fees
Unlimited Variation
Prepaid interest
Property insurance
Escrows & impounds
3rd party services
Other RESPA Provisions: - CORRECT ANSWER✔️ **Escrow
Account Restrictions
Use of a closing disclosure
Kickbacks between settlement service providers
As far as RESPA is concerned, anything of value to settlement
service providers (does NOT have to be money) - CORRECT
ANSWER✔️ Banking services
Open house services
Home warranty
, Appraisal company
Classifying contracts:
Express & Implied - CORRECT ANSWER✔️ Express: Bilateral,
executed
Intentions stated (orally or written)
Implied: Unilateral, executory
Inferred from conduct or actions
Classifying contracts:
Bilateral & Unilateral - CORRECT ANSWER✔️ Bilateral - two
promises (both parties bound to do something)
Unilateral - Only one party is bound
Classifying Contracts:
Executed & Executory - CORRECT ANSWER✔️ Executed - All
tasks performed (After closing)
Executory - tasks remaining to be done (before closing)
Statute of Frauds - CORRECT ANSWER✔️ Everything needs to
be in writing
DREAM OILS (Statute of Frauds) - CORRECT ANSWER✔️
Deeds
Restrictive covenants
Easements
Assignments
