Exclusive agency listing is when
A. the agent gets paid no matter who sells the property, regardless of whether it's the agent or the seller.
B. agents get paid only if they sell the property. No fee is earned if the owner alone sells the property.
C. sel
C. sellers have the right to use as many brokers as they want. The seller is not, however, obligated to pay any of them if he or she sells the property without the broker's help.
Tenancy by the entirety is
A. equal or unequal undivided ownership between two or more people
B. ownership which requires the four unities: Interest, Possession, Time, and Title.
C. Ownership that's available only to married couples, tenancy by the entire
C. Ownership that's available only to married couples, tenancy by the entirety means that property may not be sold without the agreement of both parties.
You are trying to price a property. Five years ago it was sold for $145,000, but property values in this particular neighborhood have decreased by an average of 5 percent since then. What is the rough value of this property?
A. $72,500
B. $130,000
C. $137
C. $137,500
137,500 X .95 = 137,500
Which of the following types of discrimination are prohibited by the Fair Housing Act of 1968?
Please select all that apply
1. Number of Children
2. Age
3. Religion
4. Behavior
5. National Origin
1. Number of Children
3. Religion
5. National Origin
A valid real estate contract must contain which of the following elements?
Please select all that apply:
1. Competency
2. Selection of a title company
3. An offer and an acceptance
4 A "legal object", i.e., a property
5. Agent's information
1. Competency
2. An offer and an acceptance
3. A "legal object", i.e., a property
The total commission paid a brokerage firm was $23,000. The firm was paid 6% on the first $200,000, 4% on the next $200,000 and 2% on the remainder. What was the sales price of the property?
$550,000
Explanation of Answer:
$200,000 * 6% = $12,000
$200,000 * 4% = $8,000
$150,000 * 2% = $3,000
As an agent you received $1,312.50 as commission for a referral fee. The listing agent paid 25% of her commission for the referral. The total commission paid was 6%, which was split equally between the listing and selling brokerage firms. If the listing a
$350,000
Explanation of Answer:
$350,000 * .06 = $21,000
$21,000/2 = $10,500
$10,500/2 = $5,250
$5,250 * 25% = $1,312.50
A mother is deeding her mortgage-free house to her son. Is the deed required to show "good consideration" to be valid in this case?
A. No, because the house does not have a mortgage and there is no lien holder involved.
B. No, because family transfers are
D. Yes, unless she is deeding it to him in her will.
If a deed is valid it must be:
select all that apply
A. Signed
B. Recorded
C. Identify the property and parties involved
D. Witnessed
A. Signed
B. Recorded
C. Identify the property and parties involved
Select all that apply:
Of the many expenses involved with owning a house, which of the following are tax-deductible?
A. Real estate taxes
B. Insurance
C. Mortgage interest
D. General home improvement and repairs
A. Real estate taxes
C. Mortgage interest
A lot that measures 420' x 670' sold for $633,150. What was the cost per square foot?
Blank Image
A. $1.50
B. $1.75
C. $2.00
D. $2.25
D. $2.25
Explanation of Answer:
420 * 670 = 281,400
$633,150 / 281,400 = $2.25
A buyer purchases a home for $225,000. The have acquired a 30 year loan at 6.5% with 20% down. How much interest will the buyers pay over the life of the loan?
$343,180.70
Explanation of Answer:
To calculate this, you must first determine the amount of the mortgage the buyer is taking. This is done by subtracting the 20% down from the purchase price leaving a note in the amount of $180,000. Then when you amortiz
Adverse possession is:
A. the sudden loss of land by an act of nature like a landslide.
B. a legal proceeding to divide property owned by two or more people.
C. giving up property voluntarily to the government
D. When someone uses your property for a peri
D. When someone uses your property for a period of time and you lose the property or have your rights to the property restricted.
Amy, Betty and Charlie are siblings and own a property as joint tenants. Charlie decides to sell his share to Larry for a reduced amount. Upon closing, Larry is a
A. tenant in common with Amy and Betty.
B. tenant by the entirety with Amy and Betty.
C. joi
A. tenant in common with Amy and Betty
Explanation of Answer:
Joint tenancy requires the unities of time, title, interest and possession. When Jayne sells her property to Maggie, the unity of time and title is breached. Agnes and Zelma are still joint ten
John and Leslie are business partners and they decided to list their apartment complex for sale. John met with Susan, an agent, and told him that he and his partner would give her the listing. John met with Susan on Monday afternoon and signed the listing
VOID
Explanation of Answer:
The listing must be signed by the parties who have the authority to sell.
You referred a client to a lender. In return they sent you a thank you note with a $50 gift card to a local restaurant. Which law makes this kickback illegal?
Blank Image
RESPA
Explanation of Answer:
The Real Estate Settlement Procedures Act (RESPA) prohibits kickbacks from service providers.
Which entity is prohibited from collecting taxes on real property?
A) Counties
B) Townships
C) Cities
D) The Federal Government
D) The Federal Government
There are no federal taxes on real property. The Constitution of the United States specifically prohibits such taxes. The federal government does, however, tax income derived from real property and gains realized on the sale of r
Which of the following types of ownership CANNOT be created by operation of law, but must be created by the parties' expressed intent?
A) Community property
B) Tenancy in common
C) Condominium ownership
D) Tenancy by the entireties
D) Tenancy by the entireties
Tenancy by the entireties is a form of ownership that husbands and wives can choose or create by deciding to do so and declaring it as such in contracts and deeds.
Which of the following is/are considered to be personal property?
A) Wood-burning fireplace
B) Furnace
C) Bathtubs
D) Lamps
D) Lamps
The concept of personal property typically comes into play at the time of sale. Things that are part of the house--bathroom fixtures, fireplaces, carpeting and such--go with the sale. (Unless specifically excluded, as can happen in the case of a
The word "improvement" would refer to all of the following EXCEPT
A) streets.
B) a sanitary sewer system.
C) trade fixtures.
D) the foundation.
C) trade fixtures.
The term "trade fixture" refers to an item installed by a tenant in a rented commercial property that he or she removes at the end of the occupancy.
All of the following are physical characteristics of land EXCEPT
A) indestructibility.
B) uniqueness.
C) immobility.
D) scarcity.
D) scarcity.
Jack owns a leasehold interest in a property whose owners or tenants agree to use the property on a periodic, non-overlapping basis. With what type of property does Jack have this leasehold interest?
A) A cooperative
B) A time-share
C) A condominium
D) A
B) A time-share
"
Time-shares are most common with vacation and resort properties. Time-share arrangements provide for equal sharing of the property's expenses among the owners.
Personal property includes all of the following EXCEPT
A) chattels.
B) fructus industriales.
C) emblements.
D) fixtures.
A) chattels
"Chattel" is a legal term that means personal property. Emblements and fructus industriales refer to profit from crops that are grown as a result of a person's labor, such as corn, as opposed to those that occur naturally, such as grass or min
A person who has complete control over a parcel of real estate is said to own a
A) leasehold estate.
B) fee simple estate.
C) life estate.
D) defeasible fee estate.
B) fee simple estate.
A portion of Wendell's building was inadvertently built on Ginny's land. This is called an
A) accretion.
B) avulsion.
C) encroachment.
D) easement.
C) encroachment.
The principal attributes of an encroachment are: 1) It is accidental and 2) it involves only part of a structure. Typically, the issue would be resolved by selling Wendell an easement or a lease or, if practical, actually moving the struc
The purchase of a ticket for a professional sporting event gives the bearer what?
A) An easement right to park his car
B) A license to enter and claim a seat for the duration of the game
C) Partial ownership in the professional sporting team
D) A license
B) A license to enter and claim a seat for the duration of the game
Easements grant access, not use. Commercial licenses, such as those required to sell beverages, souvenirs or services, cover extended periods. Although tickets to sporting events, concert
The local utility company dug up Charlotte's garden to install a natural gas line. The company claimed it had a valid easement and proved it through the county records. Charlotte claimed the easement was not valid because she did not know about it. The ea
A) was valid even though the owner did not know about it.
Easements grant only access, not ownership, use or occupancy rights. Further, that access is generally for the benefit of the property owner, such as maintaining utilities or sidewalks. As such, th
Jim and Sandy are next-door neighbors. Sandy tells Jim that he can store his camper in her yard for a few weeks until she needs the space. Sandy did not charge Jim rent for the use of her yard. Sandy has given Jim a(n) what?
A) Easement appurtenant
B) Eas
D) License
Granting the use of property for a defined period for a specific purpose is almost always a form of licensing. Easements grant only access, not ownership, use or occupancy rights. Further, that access is generally for the benefit of the propert
A defaulting borrower who faces foreclosure may avoid court actions and costs by voluntarily deeding the property to the mortgagee. This is accomplished with a __________, which transfers legal title to the lienholder.
A) short sale
B) deficiency judgment
C) deed in lieu of foreclosure
With the deed in lieu option, a borrower voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. The transfer, however, does not terminate any existing liens on the property.
Anna owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into salable lots, but she wants to retain control over the lake frontage while allowing lot owners to have access to the lake. Which
B) An appurtenant easement
Appurtenant easements afford the most protection since they are generally a permanent feature of the property. Thus, in the case of sale, the lake access passes to any new owners. By contrast, an "easement in gross" is between t
Sam and Nancy bought a store building and took title as joint tenants. Nancy died testate. Sam now owns the store
A) as a joint tenant with rights of survivorship.
B) in severalty.
C) as a tenant in common with Nancy's heirs.
D) in trust.
B) in severalty.
Joint tenancy means that two parties have an undivided interest in a particular property and, upon the death of one party, full ownership automatically goes to the survivor. Despite the way it sounds, "in severalty" means as sole owner.
When real estate under an estate for years is sold, what happens to the lease?
A) It expires with the conveyance.
B) It binds the new owner.
C) It is subject to termination with proper notice.
D) It is valid but unenforceable.
B) It binds the new owner.
Tenancy for years is the common form of rental agreements and binds all future owners for the term of the lease.
Evan lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan covering the entire property. Like the other residents, Evan owns stock in the corporation and has a lease on his apartment. This type of owner
D) cooperative.
This is the distinguishing characteristic that differentiates cooperative from condominium ownership. Although often confused, a condominium owner holds title to his individual unit. A co-op owner, on the other hand, is technically a rente
In a gift of a parcel of real estate, one of the two owners was given an undivided 60 percent interest and the other received an undivided 40 percent interest. The two owners hold their interests as what?
A) Cooperative owners
B) Joint tenants
C) Communit
D) Tenants in common
In order to create joint tenancy, some form of relationship must exist between the parties involved, whether business, spousal or other. Because their interests were acquired as a gift, the parties in this instance become tenants in c
To create a joint tenancy relationship in the ownership of real estate, there must be unities of
A) desires, ownership, claim of right, and possession.
B) title, interest, liens, and survivorship.
C) possession, time, interest, and title.
D) ownership, po
C) possession, time, interest, and title.
Owner Grace's property has been foreclosed. After the property was sold for $340,000, she still owed $60,000 to the lender. The lender may be able to get a personal judgment against Grace for the $60,000. This is called a
A) leverage lien.
B) partition la
D) deficiency judgment.
A deficiency judgment enables the lender to attach and foreclose a judgment lien on other real or personal property the borrower owns.The lender's ability to pursue such a judgment may be limited, however.
The system of ownership of real property in the United States is what?
A) Incorporeal
B) Allodial
C) Command
D) Feudal
B) Allodial
Under which of the following types of liens can both the real property and the personal property of the debtor be sold to pay the debt?
A) Real estate tax lien
B) Mechanic's lien
C) Judgment lien
D) Assessment lien
C) Judgment lien
Most liens are against a specific property, such as a primary residence. Thus, a contractor seeking payment for a new deck cannot have a homeowner's car attached in settlement. A judgment lien, however, is a decision directed by the court
A homeowner owned a house on a lot. The front ten feet of the lot were taken by eminent domain for a sidewalk. Would the homeowner be entitled to compensation?
B) Yes. He must be paid for the use of the sidewalk.
C) No. He still had use of the house and l
A) Yes. The land was taken for public use by eminent domain.
Governments and municipalities can only seize property (other than in criminal cases) for the public good and through eminent domain, which is a process, not an arbitrary action. Part of that pr
The covenant in a deed which states that the grantor is the owner and has the right to convey the title is called
A) covenant of power.
B) covenant of warranty forever.
C) covenant of seisin.
D) covenant against encumbrances.
C) covenant of seisin.
Another outgrowth of the feudal system, "seisen" derives from the French meaning to "sit upon or own" and gives owners the right to sell or transfer property at will.
The recording of a deed
A) is all that is required to transfer the title to real estate.
B) gives constructive notice of the ownership of real property.
C) insures the interest in a parcel of real estate.
D) warrants the title to real property.
B) gives constructive notice of the ownership of real property.
Recording a deed does not convey, insure or warrant ownership. However, it does protect the owner's interest in a property by serving notice that the recorded owner is the only recognized hol
What do liens and easements have in common?
A) Both are encumbrances.
B) Both must be on the public record to be valid.
C) Neither can be done without the consent of the owner.
D) Both are money claims against the property.
A - Both are encumbrances. "
Liens are, of course, serious in that they indicate the owner has failed to pay a debt secured directly or indirectly by the property. Easements, on the other hand, are generally a practical necessity for most residential pro
The title to real estate passes when a valid deed is
A) signed and recorded.
B) delivered and accepted.
C) filed and uploaded to the cloud.
D) executed and mailed.
B) delivered and accepted.
Fundamentally, real estate transactions only involve two parties--the buyer and the seller. All that's necessary to create a legal sale is for one party to make an offer the other accepts. Recording, escrow, real estate licensee
The primary purpose of a deed is to
A) prove ownership.
B) transfer title rights.
C) give constructive notice.
D) prevent adverse possession.
B) transfer title rights.
A deed is the instrument by which ownership of a property is transferred from one person to another, while a title is evidence of that ownership.
A special warranty deed differs from a general warranty deed in that the grantor's covenant in the special warranty deed
A) applies only to a definite limited time.
B) covers the time back to the original title.
C) is implied and is not written in full.
D
C) is implied and is not written in full.
The more common deed in most states is the general warranty, because it establishes the ownership trail and validity of title going back to the original recorded ownership (for example, the purchase of Manhattan I
As long as it is specified as part of his or her duties, is it legal for an unlicensed salaried assistant to solicit listings for the broker?
A) Yes, if it is part of a written job description.
B) No, soliciting listings is the exclusive responsibility of
D) No, active participation in real estate transactions requires a license.
Support tasks such as answering phones or making copies do not require any licensing. However, activities such as soliciting listings or providing information about a property are
Licensees must notify the Real Estate Commission when which of these events occur?
A) If there is a significant change in sales volume
B) If the business trade name has changed within the past 10 days
C) If the business is thinking about advertising on a
B) If the business trade name has changed within the past 10 days
Licensees have 10 days in which to notify the Commission of any change in their business name, trade-name or address.
At what point may a person may begin practicing real estate in North Carolina?
A) When a provisional broker activates his or her license
B) Upon successful completion of all course and training work
C) Upon completion of all education requirements
D) Upon
A) When a provisional broker activates his or her license
A provisional brokers license has to be activated for a person to practice real estate. Remember that provisional brokers must operate under the direct supervision of a BIC to sell real estate.
What is "first substantial contact?"
A) The initial meeting to formalize a client-agency relationship.
B) A flexible standard for establishing client-agency relationships.
C) The point a listing agreement is signed.
D) The point at which buyers or sellers
D) The point at which buyers or sellers must be given the North Carolina consumers' real estate disclosure document.
Although answers 1 and 2 answer are both partially correct, the real purpose of "first substantial contact" is to give prospective clients