North Carolina Real Estate Exam
1,490+ Practice Questions & Answers
Every question includes a detailed explanation. Organized by the 12 topics on the North Carolina real estate salesperson exam.
Property Management
148 questions- In North Carolina, a property manager who collects rent and manages property for others must hold:
- A property manager's primary fiduciary duty is owed to:
- In North Carolina, a security deposit for a residential unit may not exceed:
- How many days does a North Carolina landlord have to return a security deposit after the tenant vacates?
- The North Carolina Residential Rental Agreements Act requires landlords to:
- A management agreement between a property manager and owner should include all of the following EXCEPT:
- Gross leases in commercial property management mean:
- A triple-net (NNN) lease requires the tenant to pay:
- A percentage lease typically found in retail properties requires the tenant to pay:
- The purpose of a property management trust account in North Carolina is to:
- Under the NC Tenant Security Deposit Act, a landlord may deduct from a security deposit for:
- In North Carolina, a landlord must give a month-to-month tenant how much notice to terminate the tenancy?
- A North Carolina landlord who fails to maintain the premises in a habitable condition may face:
- A property manager who receives rent checks must deposit them into:
- Which type of lease provides the most protection to the tenant against rent increases?
- An 'index lease' in commercial real estate ties rent increases to:
- The vacancy rate for a property management portfolio is calculated as:
- A 'CAM' charge in a commercial lease stands for:
- Which of the following is NOT typically included in a commercial NNN lease?
- Under the NC Uniform Residential Landlord-Tenant Act, a landlord may NOT retaliate against a tenant for:
- A property manager in North Carolina must hold which license to manage residential rental property for others for compensation?
- The NC Residential Rental Agreements Act governs the rights and responsibilities of landlords and tenants. Under this act, a landlord is generally required to:
- Under NC law, the maximum security deposit a landlord may charge for an unfurnished residential unit on a month-to-month lease is:
- In NC, a landlord who wrongfully withholds a tenant's security deposit after the tenancy ends may be liable for:
- Under the NC Residential Rental Agreements Act, a landlord must return the security deposit or provide an itemized accounting within how many days after the tenancy ends?
- A 'gross lease' for commercial property in NC means:
- A 'triple net lease' (NNN) requires the tenant to pay:
- In NC, a summary ejectment (eviction) action may be filed in:
- Under NC law, a property manager must keep security deposits in:
- A capitalization rate (cap rate) for an investment property is calculated as:
- A 'percentage lease' commonly used for retail properties in NC requires tenants to pay:
- The 'net operating income' (NOI) for a property management report excludes:
- Under the NC Vacation Rental Act, a property manager holding tenant advance payments must keep them:
- A property manager in Charlotte, NC is negotiating a new lease for a commercial office space. The manager should ensure the lease clearly addresses:
- A property management agreement in NC should specify:
- Under the NC Residential Rental Agreements Act, a landlord who fails to maintain habitable conditions after proper notice may be subject to:
- A property manager who comingles tenant security deposits with operating funds in NC is subject to:
- A 'management fee' for a NC residential property manager is typically calculated as:
- A tenant in NC who is being evicted for non-payment of rent must receive a written notice to pay or vacate how many days before the eviction filing?
- A 'lease renewal option' in a NC commercial lease gives the tenant:
- Under the NC Vacation Rental Act, if a tenant cancels a vacation rental reservation, the property manager must:
- A NC property manager who discovers a fair housing violation by a tenant (e.g., a tenant harassing another tenant based on race) should:
- A 'net lease' requires the tenant to pay:
- A NC property manager's 'annual report' to a property owner should include:
- When a commercial tenant in NC exercises a 'right of first refusal' to purchase the property, they must:
- Under NC law, a landlord must give a month-to-month tenant how many days' notice to terminate the tenancy?
- A 'sublease' in NC occurs when:
- A NC property manager who enters a rental unit without providing proper notice (except in emergencies) may be liable for:
- A 'vacancy rate' for a NC rental property is calculated as:
- When a tenant in NC intentionally damages a rental property beyond normal wear and tear, the landlord may:
- A NC property manager overseeing a large apartment complex in the Raleigh-Durham market should monitor which economic indicator most closely to project future vacancy rates?
- A NC commercial tenant who ceases operations but continues to pay rent is engaging in:
- A NC residential property manager's duties to the owner typically include all EXCEPT:
- A NC landlord who locks out a tenant or removes their belongings to force them out (without a court order) is engaged in:
- The NC Tenant Security Deposit Act limits the maximum security deposit for an unfurnished residential unit rented on an annual lease to:
- A NC property manager who collects a finder's fee from a vendor (such as a contractor) for directing management work to them, without disclosing this to the property owner, has:
- In NC, a tenant's security deposit earns interest if:
- A NC commercial lease that includes a 'CPI adjustment' (Consumer Price Index) is providing for:
- A 'resident manager' living at an apartment complex in NC who collects rent and manages the property must hold a real estate license unless:
- Which of the following is a key provision of the NC Residential Rental Agreements Act regarding security deposit deductions?
- An 'anchor tenant' in a NC shopping center is important because:
- A 'graduated rent lease' in NC provides for:
- A tenant in a NC rental property who installs permanent fixtures (such as built-in shelving) without permission and then removes them at move-out, damaging the walls, is liable for:
- A NC property manager who receives a habitability complaint from a tenant about no heat in winter should:
- The NC Vacation Rental Act applies to rental of residential property for:
- A NC 'ground lease' is a commercial arrangement where:
- In NC commercial property management, a 'common area maintenance' (CAM) charge passes which costs to tenants?
- A NC property manager who receives a written complaint from a tenant about a neighbor engaging in domestic violence should:
- A NC commercial lease with a 'personal guarantee' requires:
- The 'effective gross income' (EGI) for a NC rental property is calculated as:
- A NC property manager conducting annual inspections of rental units should document findings primarily to:
- In NC, a tenant who is called to active military duty may terminate a lease early under:
- A NC commercial tenant who assigns their lease to a new business transfers:
- Which type of residential lease in NC automatically renews on a month-to-month basis unless proper notice is given?
- A NC property manager who receives a bid for a roof repair costing $18,000 should:
- In NC, a 'leaseback' arrangement occurs when:
- Under the NC Vacation Rental Act, a property manager must provide renters with a written rental agreement that includes:
- A NC residential property manager whose client (property owner) wants to raise rent by 50% immediately in violation of a valid lease should:
- A property manager in NC who discovers bedbugs in a rental unit should:
- A 'loss-to-lease' in a NC property management report represents:
- Under NC law, a landlord who accepts rent after sending an eviction notice may be deemed to have:
- A NC property manager who discovers their client (property owner) has been allowing unauthorized occupants (squatters) to live in a vacant building should:
- A NC commercial lease provision requiring the tenant to return the space in 'broom clean' condition at lease end means:
- A NC property manager's 'owner's statement' (monthly report) should include:
- Under NC law, when can a landlord legally remove a tenant's belongings from a rental unit?
- In NC, a landlord must maintain a rental unit that includes functional smoke detectors under:
- When marketing a rental property in NC, a property manager must ensure advertisements:
- A NC commercial property manager who receives a tenant's request to sublet their space should first:
- When a NC tenant who is a victim of domestic violence requests early lease termination under G.S. Chapter 42, the landlord:
- In NC, a 'renewal commission' in a property management context refers to:
- Under the NC Residential Rental Agreements Act, a landlord who enters a rental unit without the tenant's consent and without a legitimate reason (other than an emergency) may be liable for:
- A NC property manager who suspects a tenant is using the property for illegal drug manufacturing should:
- Under NC law, a tenant may repair and deduct if the landlord fails to make essential repairs. This remedy is:
- A NC landlord who wants to raise rent on a month-to-month tenant must provide how many days' notice?
- A NC property manager using online platforms to list rental properties must ensure that:
- Under NC law, a commercial landlord who accepts rent from a holdover tenant (after the lease expires without renewal) creates:
- Under the NC Vacation Rental Act, a property manager who rents out a vacation property must ensure the tenant receives a copy of:
- When NC's 'habitability standard' is violated (e.g., no running water), the tenant's primary remedy is:
- A NC property manager for an Outer Banks vacation rental must ensure the property complies with which unique local regulations?
- A NC property manager's 'reserve fund' for a commercial building is maintained to:
- Under the NC Condominium Act, unit owners have what minimum right regarding association meetings?
- A NC commercial property manager who negotiates a renewal lease with a long-term tenant should document the negotiation by:
- Under NC law, what notice period must a landlord give to enter a unit for non-emergency repairs?
- A NC property manager collecting a 'pet deposit' from a tenant must understand that:
- An NC commercial tenant who exercises their option to renew must typically provide written notice by a specified deadline because:
- A NC property manager who takes on a new management assignment should first:
- The NC 'tenant's right to privacy' in a rental unit means the landlord:
- Under NC law, a landlord is required to make all security deposit deductions in writing and deliver the accounting to the tenant within:
- A NC commercial tenant who has exclusive use rights in their lease (e.g., 'the only hair salon in the shopping center') is protected by:
- In NC, a residential tenant whose unit becomes uninhabitable due to conditions NOT caused by the tenant may have the right to:
- Under the NC Vacation Rental Act, a landlord/manager who retains advance rent payments and does not provide the rental must:
- A NC property manager handling rental collections may charge a 'late fee' only if:
- When a NC commercial tenant's lease includes a 'co-tenancy clause,' rent reduction may be triggered when:
- A property manager's 'cap-ex reserve' (capital expenditure reserve) in a commercial building is calculated based on:
- A NC residential tenant who is 5 days late on rent receives a 10-day 'pay or quit' notice from the landlord. The tenant's options are:
- A NC commercial property manager whose building needs an emergency roof repair during a storm should:
- Under the NC Residential Rental Agreements Act, the landlord has which obligation regarding appliances included in the lease?
- A NC commercial lease 'estoppel certificate' is requested by a lender or buyer and requires the tenant to certify:
- When a NC tenant subleases their unit without the landlord's required written permission, the landlord may:
- A NC property manager who discovers a tenant is operating a home-based business in violation of the lease's 'residential use only' provision should:
- Under the NC Tenant Security Deposit Act, a landlord who fails to return the deposit or provide an itemized accounting within 30 days forfeits the right to:
- A NC property manager who accepts a cash payment from a tenant and provides only a verbal receipt has violated:
- A NC commercial property manager should always obtain 'competitive bids' for major repair projects exceeding a specified threshold because:
- When a NC lease includes an 'indemnification clause,' the tenant typically agrees to:
- A NC property manager who discovers the owner has been collecting rents directly and not reporting income may have concerns about:
- In NC, when a mobile home park owner decides to close the park and displace tenants, they must comply with:
- A NC property manager who suspects tenant fraud on a rental application (such as falsified income verification) should:
- A NC commercial tenant with a 'right of first offer' (ROFO) has the right to:
- Under NC's Tenant Security Deposit Act, for residential tenancies of more than 2 months, a landlord may collect a maximum security deposit of how many months' rent?
- Under NC's Vacation Rental Act (G.S. 42A), vacation rental agreements must be in writing and the tenant's advance payment must be deposited into:
- A property manager in NC collects first month's rent, last month's rent, and a security deposit at lease signing. Under NC law, these funds should be:
- Under NC's Residential Rental Agreements Act, a landlord must return a security deposit within how many days after the tenant vacates?
- A broker-in-charge (BIC) at an NC property management firm is responsible for:
- Under NC law, a landlord may deduct from a security deposit for all of the following EXCEPT:
- An NC property manager who collects rents and maintenance deposits for managed properties must keep trust account records for a minimum of how many years?
- The NC Vacation Rental Act requires vacation rental agreements to include which of the following?
- In NC, an 'eviction' (summary ejectment) proceeding is filed in:
- In NC, an unlicensed employee working for a property management firm may legally:
- A NC property manager receives a maintenance request from a tenant with a disability who needs a grab bar installed in the bathroom. Under the FHA, the manager must:
- A property manager discovers the tenant has installed new flooring in violation of the lease. Under NC law, the manager's FIRST step should be:
- When a residential lease in NC expires and the tenant remains in possession with the landlord's consent, the tenancy converts to:
- Under the NC Vacation Rental Act, if a tenant terminates a vacation rental agreement more than 30 days before the start date, the tenant is entitled to:
- Under NC law, a broker property manager who holds a tenant's security deposit in a trust account must:
- A NC broker who manages rental properties must maintain trust account records showing all receipts and disbursements. These records must reconcile:
- The NC Residential Rental Agreements Act (G.S. 42) requires landlords to:
- Under NC's Tenant Security Deposit Act, a landlord may NOT deduct from the security deposit for:
- Under the NC Vacation Rental Act, the property manager or owner must give the tenant how many days' advance notice before the landlord may terminate a vacation rental for breach?
- A NC property manager must provide an owner with a written accounting of trust funds at least:
North Carolina License Law
146 questions- Which agency regulates real estate licenses in North Carolina?
- How many hours of pre-license education are required to sit for the North Carolina broker license exam?
- How many questions are on the North Carolina real estate broker licensing exam?
- What is the minimum passing score on the North Carolina real estate licensing exam?
- In North Carolina, all newly licensed brokers begin on 'provisional' status. To remove provisional status, they must:
- In North Carolina, unlike most states, the entry-level license is called a:
- A North Carolina provisional broker must work under the supervision of:
- Under North Carolina license law, a broker-in-charge (BIC) is responsible for:
- North Carolina requires mandatory agency disclosure. This disclosure must occur:
- In North Carolina, the Working with Real Estate Agents (WWREA) disclosure form must be provided to:
- How many hours of continuing education must North Carolina brokers complete per year?
- Under North Carolina law, buyer agency agreements must be:
- In North Carolina, the entry-level license classification is called:
- A Provisional Broker in North Carolina must work under the supervision of:
- How many post-licensing education hours must a Provisional Broker complete to remove the provisional status?
- What happens to a Provisional Broker's license if they do not complete post-licensing education within the required period?
- How many members serve on the North Carolina Real Estate Commission?
- What is the term length for a North Carolina Real Estate Commission member?
- Which of the following activities requires a real estate license in North Carolina?
- The NCREC Education and Recovery Fund protects consumers who have suffered monetary damages from a licensee's:
- What is the maximum amount the NCREC Recovery Fund will pay per licensee for all claims against that licensee?
- If the NCREC pays a Recovery Fund claim on behalf of a licensee, what automatically happens to that licensee's license?
- North Carolina brokers must renew their license by:
- How many continuing education hours must a full broker complete each license year in North Carolina?
- Which of the following activities is EXEMPT from the North Carolina license requirement?
- Which of the following must be prominently displayed in a North Carolina real estate office?
- A Broker-in-Charge in North Carolina must have been actively licensed as a broker for at least:
- A broker working independently (not associated with a firm) in North Carolina must:
- The NCREC can take disciplinary action against a licensee for all of the following EXCEPT:
- North Carolina requires all real estate advertising to include:
- Under North Carolina law, a licensee who pays referral fees to unlicensed individuals:
- A North Carolina provisional broker whose license is inactive:
- The NCREC's mandatory update CE course covers:
- Which of the following is TRUE regarding a broker's obligation to handle offers?
- Under North Carolina license law, which of the following is required before a real estate firm can conduct business?
- A licensee who changes their home address must notify the NCREC within:
- Which of the following is TRUE about continuing education in North Carolina?
- In North Carolina, the term 'commingling' refers to:
- Which of the following is NOT required for a North Carolina broker license application?
- An applicant who fails the North Carolina broker license exam may retest:
- A broker's license is considered 'inactive' in North Carolina when:
- A North Carolina broker convicted of a felony must:
- The NCREC Real Estate Bulletin is published to:
- A broker who knowingly prepares a false or misleading comparative market analysis (CMA) may face:
- Which state agency is responsible for licensing and regulating real estate brokers in North Carolina?
- Under NC General Statutes Chapter 93A, how many hours of pre-license education must a salesperson candidate complete before sitting for the state exam?
- A provisional broker in North Carolina who wishes to remove the provisional status must complete how many hours of post-licensing education?
- The NCREC is composed of how many members appointed by the Governor?
- Under NC license law, which of the following activities requires a real estate license?
- What is the license renewal period for North Carolina real estate brokers?
- How many hours of continuing education must a North Carolina broker complete each license year?
- A broker-in-charge (BIC) in North Carolina has which of the following additional CE requirements?
- Under NC license law, a broker whose license is on inactive status may:
- Which of the following is NOT an exemption from the North Carolina real estate licensing requirement?
- The NCREC may discipline a broker for which of the following actions?
- A North Carolina broker who receives compensation from both buyer and seller in the same transaction without disclosure to both parties has committed:
- Which of the following is required for a real estate firm to operate legally in North Carolina?
- A person who acts as a real estate broker in NC without a license is subject to:
- The NCREC's primary mission is to:
- A broker in NC who fails to complete the required continuing education before the June 30 renewal deadline will have their license:
- A real estate license in NC may be issued to which of the following business entities?
- A broker in NC who discovers their client is planning to use the real estate transaction to commit mortgage fraud should:
- The NCREC's Recovery Fund provides compensation to members of the public who have suffered monetary losses due to:
- Under NC license law, a broker must provide a written agency agreement before performing which service?
- A NC broker who advertises on social media must include which required disclosure?
- A provisional broker in NC must affiliate with a broker-in-charge within how many days of initial licensure?
- The NCREC requires that all trust account records be retained by the broker for a minimum of:
- The NC Real Estate Commission may take which disciplinary actions against a licensee?
- Which of the following actions would likely result in revocation of a NC real estate license?
- Under NC license law, a broker must provide the Working with Real Estate Agents disclosure at first substantial contact with:
- A NC real estate licensee who is also a licensed attorney may practice real estate brokerage:
- If a NC broker accepts an offer on behalf of the seller but does not promptly notify the seller, this violates the fiduciary duty of:
- A NC broker who deposits a client's earnest money check into their personal account instead of a trust account has committed:
- A broker in NC who represents both a buyer and seller and fails to disclose this dual agency relationship prior to entering into a binding contract has violated:
- NC license law requires a broker to provide a copy of any written offer to the buyer who made the offer:
- A NC broker who has been convicted of a felony involving fraud must:
- A NC real estate broker may receive compensation from which parties in a transaction?
- A NC broker who receives earnest money must deposit it in a trust account within 3 banking days of:
- Under NC license law, a broker who acts as both principal (buying for themselves) and agent must disclose this dual role:
- A NC broker who makes a false statement on their license application may have their license:
- A NC broker who changes their mailing address must notify the NCREC within how many days?
- Under NC license law, a broker who allows an unlicensed assistant to conduct negotiations with buyers or sellers is:
- What is the maximum period an NC real estate license can remain on inactive status before it expires?
- A NC broker who wants to open their own independent brokerage must first:
- Under NC license law, a real estate broker may pay a referral fee to a person who referred a buyer or seller to the broker if:
- A NC broker may accept which of the following business structures for their brokerage activities?
- When a NC broker leaves one firm to join another, they must:
- A NC real estate firm that operates as an LLC must designate which individual as the broker-in-charge?
- A NC provisional broker who fails to complete the 90-hour post-licensing education within 18 months will have their license:
- Under NC license law, a broker's license is automatically suspended if the broker:
- Under NC license law, a broker who knows their client is engaged in tax fraud related to a real estate transaction should:
- Which entity issues the license for a NC real estate brokerage firm?
- In NC, a licensee who has their license revoked must wait how long before reapplying?
- Under NC license law, a broker is required to maintain which records for at least 3 years?
- A NC broker who represents a buyer in the purchase of a commercial property for $2 million must hold which specific license?
- Under NC license law, a broker-in-charge who fails to properly supervise an affiliated broker who then commits a license law violation may be held:
- The NC Real Estate License Law is codified in which chapter of the NC General Statutes?
- When must a NC real estate license applicant provide a criminal background check?
- A NC broker's 'errors and omissions' (E&O) insurance covers:
- A NC broker who has an ownership interest in a property they are selling to a client must disclose this to the client:
- A NC real estate salesperson (provisional broker) is compensated by:
- Under NC license law, which of the following is considered an act of real estate brokerage?
- In NC, which of the following activities does NOT require a real estate license?
- A NC broker who acts as a 'net lister' — where the seller receives a fixed amount and the broker keeps the excess as commission — is engaged in:
- Under NC license law, when a broker receives a copy of the signed listing agreement, they must provide the seller with a copy:
- A NC broker is required to notify all parties in writing of any ownership interest or financial stake they have in a transaction. This is required by:
- The NCREC's rule requiring trust account reconciliation requires the broker to:
- A NC broker who is affiliated with a real estate firm that is found to have systemic violations of license law may be investigated by the NCREC for:
- A NC broker's trust account must be designated as a:
- What is the maximum civil penalty the NCREC may impose on an unlicensed person who engages in real estate brokerage in NC?
- A NC broker who wants to engage in property management in addition to sales brokerage must hold:
- When a NC broker advertises a listing price for a property, who has the authority to set or change the list price?
- A NC provisional broker who is affiliated with a firm but the BIC is absent must:
- A NC broker who receives a gift (such as a bottle of wine) from a home inspector they referred a client to has received:
- Under NC license law, a broker who is employed by a real estate firm as a W-2 employee (rather than an independent contractor) still must:
- Under NC license law, what must a broker do if they receive earnest money as a personal check?
- The NC Real Estate Commission may audit a broker's trust account:
- A NC real estate broker who also holds a mortgage loan originator (MLO) license may:
- A NC broker may be disciplined for which of the following 'unworthy conduct' violations?
- A NC broker who is uncertain whether a specific action violates license law or NCREC rules should:
- A NC broker wishing to become a 'broker-in-charge' (BIC) must satisfy which requirements?
- When the NCREC receives a complaint against a NC broker, the initial step is typically:
- A NC broker who refuses to work with a client based on the client's disability is subject to discipline under both:
- Under NC license law, the primary reason for requiring a license for real estate brokerage is to:
- A provisional broker in North Carolina who has not completed the post-licensing education within 18 months of initial licensure will have their license:
- A NC real estate broker who fails to renew their license by June 30 each year will have their license placed in which status?
- NCREC may discipline a broker for which of the following acts?
- Which of the following activities requires a real estate license in NC?
- NCREC requires that a broker report a criminal conviction to the Commission within how many days?
- The NC Real Estate Commission may discipline a licensee for which of the following without a criminal conviction?
- The NC Real Estate License Law (Chapter 93A) defines 'real estate broker' to include which activity?
- A NC broker is found guilty of misrepresentation during a real estate transaction. NCREC may impose which of the following sanctions?
- A NC broker who wants to operate as an independent broker (not under a BIC's supervision) must hold at minimum which license status?
- How many hours of continuing education does a NC broker need to complete annually to renew an active license?
- Which of the following actions would constitute 'commingling' of funds by an NC broker?
- A NC broker is NOT required to complete continuing education in a given year if they:
- A broker who practices real estate in NC without a license is subject to:
- The NC Real Estate Commission's primary function is to:
- Which of the following persons is EXEMPT from NC's real estate licensing requirements?
- Under NC license law, a broker's license may be suspended rather than revoked if NCREC determines the violation was:
- To become a Broker-in-Charge (BIC) in NC, a broker must:
- Under G.S. 93A, which of the following is TRUE about license portability for brokers licensed in other states?
- A NC real estate broker who changes their firm affiliation must notify NCREC within how many days?
- A NC broker who wants to place their license on 'inactive' status must:
- The NC Real Estate Commission's rules (NCREC Rule 58A .0104) require a broker to provide an agency disclosure WHENEVER they:
- The North Carolina Real Estate Commission (NCREC) requires provisional broker applicants to complete how many hours of pre-license education?
Real Estate Math
137 questions- A listing broker receives a 6% commission on the sale of a $350,000 home. The listing broker splits the commission 50/50 with the selling broker. How much does the listing broker receive?
- A property is listed at $425,000. The buyer offers $410,000. If the seller accepts, what is the commission at 5.5%?
- A North Carolina property has an assessed value of $240,000. The tax rate is $1.10 per $100 of assessed value. What is the annual tax?
- A buyer pays $380,000 for a home and takes out an 80% LTV loan. How much is the down payment?
- A rectangular lot measures 150 feet wide by 200 feet deep. What is the lot size in square feet?
- How many acres is a lot that measures 30,000 square feet? (1 acre = 43,560 sq ft)
- A home sells for $425,000 and the broker charges a 5.5% commission. What is the total commission?
- A property is assessed at 80% of its $350,000 market value. The tax rate is $1.20 per $100 of assessed value. What are the annual taxes?
- A seller nets $270,000 after paying a 6% commission. What was the sale price?
- A buyer's loan balance is $180,000 at 7% annual interest. What is the first month's interest payment?
- A property is purchased for $220,000 and sold 3 years later for $264,000. What is the percentage gain?
- A commercial property has a NOI of $45,000 and the capitalization rate is 7.5%. What is the value?
- A landlord charges $1,800/month rent on a property valued at $216,000. What is the gross rent multiplier?
- Annual property taxes of $3,600 are prorated to closing on September 1. The seller is responsible for taxes through August 31. Using the statutory (360-day) year, how much does the seller owe?
- A North Carolina property sells for $460,000. The excise tax is $2 per $1,000. What is the total excise tax?
- An investor buys a duplex for $280,000 with 25% down. What is the loan amount?
- A listing broker receives 50% of a 6% commission on a $400,000 sale. What is the listing broker's share?
- A property is assessed at $180,000 and the tax rate is $0.85 per $100 of assessed value. What are the annual taxes?
- A rectangular commercial building measures 80 feet by 120 feet. What is the building area in square feet?
- A loan has a monthly payment of $1,750 and the current balance is $230,000 at 7.5% annual interest. How much of the first payment is interest?
- A property manager charges 8% of collected rents. Monthly rent collected is $7,500. What is the monthly management fee?
- A home was purchased for $180,000 and sold for $234,000. What was the percentage appreciation?
- A property has a potential gross income of $60,000, vacancy rate of 5%, and operating expenses of $18,000. What is the NOI?
- A buyer needs to borrow $320,000 at 6.5% for 30 years. Using a factor of $6.32 per $1,000, what is the monthly principal and interest payment?
- A 6-unit apartment building has all units renting for $950/month. What is the annual potential gross income?
- A triangular lot has a base of 200 feet and a height of 150 feet. What is the lot area in square feet?
- An investor purchases a property for $500,000 with 20% down. What is the investor's equity at purchase?
- A home's current assessed value is $240,000 and the property tax rate is $1.10 per $100. Taxes are paid in two installments. What is each installment?
- A property manager collected $42,000 in rent last month and charges a 7% management fee. What is the fee?
- If a property is appraised at $325,000 and the lender requires 20% down, what is the maximum loan amount?
- A property generates annual net income of $36,000 and is purchased for $450,000. What is the overall (cap) rate?
- A lot measuring 1.5 acres is being offered at $4.50 per square foot. What is the asking price? (1 acre = 43,560 sq ft)
- A seller owes $185,000 on their mortgage. They want to net $130,000 after paying the loan and a 5% commission. What must the house sell for?
- Annual rent on a commercial lease is $24 per square foot. The space is 2,500 square feet. What is the monthly rent?
- The NC excise tax on a deed for a property selling at $295,000 is:
- A property in Asheville, NC sells for $420,000. The broker charges a 5.5% commission. The total commission is:
- A property has an annual NOI of $36,000 and a cap rate of 7.5%. What is its estimated value?
- A buyer secures a 30-year fixed mortgage on a $350,000 NC home with 10% down at 7% annual interest. The loan amount is:
- A rental property in Durham, NC rents for $1,800/month. Using a GRM of 150, what is the estimated property value?
- A lot measuring 150 feet by 200 feet is listed for $3 per square foot. The total listing price is:
- A homeowner's property is assessed at $380,000. The county tax rate is $0.72 per $100 of assessed value. The annual property tax is:
- A property sold for $525,000. The seller paid 6% commission, $1,050 in excise taxes, and $3,200 in closing costs. What were the seller's total expenses?
- A prorated property tax credit is given to the buyer at closing. If the annual tax is $3,650 and closing is on March 1 (59 days into the year), the seller's share of taxes is approximately:
- What is the square footage of a triangular lot with a base of 120 feet and a height of 80 feet?
- A borrower in NC has a monthly PITI payment of $1,800 and a gross monthly income of $6,000. Their housing expense ratio is:
- A property has effective gross income of $120,000 and operating expenses of $48,000. The net operating income (NOI) is:
- A property sells for $485,000. The NC excise tax owed by the seller is:
- If a home in Raleigh has an assessed value of $420,000 and the county millage rate is 8 mills, what is the annual property tax?
- A buyer purchases a home in Chapel Hill for $550,000 with a 20% down payment. How much is the down payment?
- A seller nets $340,000 after paying a 6% commission. What was the sales price?
- An investment property in Greensboro has a potential gross income of $96,000, a 5% vacancy rate, and operating expenses of $32,000. What is the NOI?
- A property in Asheville is purchased for $380,000. The buyer puts down 15%. The loan amount is:
- A commercial property has an annual NOI of $84,000 and an asking price of $1,050,000. What is the capitalization rate?
- A property rents for $2,200/month. Annual operating expenses are $8,400. What is the annual NOI (assuming no vacancy)?
- A NC investor buys a property for $400,000 and sells it 3 years later for $460,000. The simple return on investment (ignoring expenses) is:
- A broker earns a 6% commission on a $375,000 sale. If the broker splits the commission 60/40 with their firm (broker receives 60%), the broker's share is:
- A vacant lot in Raleigh is 0.75 acres. If one acre equals 43,560 sq ft, the lot is approximately:
- A homeowner bought a NC property for $280,000 five years ago and is selling it for $350,000. The percentage increase in value is:
- A property has potential gross income of $72,000, a 4% vacancy rate, and operating expenses of $22,000. The NOI is:
- A NC property's assessed value for tax purposes is $320,000 and the property tax rate is $1.10 per $100 of assessed value. The annual taxes are:
- A 1-acre lot in Wake County is listed for $225,000. What is the price per square foot (1 acre = 43,560 sq ft)?
- A property in Charlotte sells for $620,000. The listing firm (representing the seller) earns a total 5% commission. The co-op split is 50/50 between listing and selling firms. Each firm earns:
- A buyer in NC borrows $280,000 at 6% annual interest on a 30-year fixed-rate mortgage. The first month's interest payment is:
- A property in the Research Triangle Park area is listed at $875,000. The seller pays a 5% commission and NC excise tax. The excise tax is:
- A property in Durham sells for $395,000. The NC excise tax paid by the seller is:
- An income property in Greensboro has an NOI of $55,000 and a cap rate of 6.5%. Its value using the income approach is approximately:
- A commercial space in Charlotte is leased at $28 per square foot annually for 4,500 sq ft. The monthly rent is:
- An appraiser uses a comp that sold for $320,000. The comp has a pool (value +$8,000) but lacks a garage (value -$12,000) compared to the subject. The adjusted comp value is:
- A NC investor buys a rental property for $240,000 and receives $1,600/month rent. The annual gross rent multiplier (GRM) is:
- A property in Wilmington, NC has a 7% cap rate and generates an NOI of $42,000. What is the estimated value?
- A property manager charges a 9% management fee on collected rents. If the property collects $18,500/month, the annual management fee is:
- An investor in NC buys an office building for $1,200,000 with a 25% down payment. The mortgage loan amount is:
- A home in Winston-Salem, NC sells for $285,000. The seller pays a 6% commission and NC excise tax. The seller's total commission and excise tax is:
- A broker in NC negotiates a listing for $450,000 and the home sells at full price. The 6% commission is shared 50/50 between listing and selling firms. Each firm's broker receives 70% of their firm's share. Each broker earns:
- An Asheville, NC investment property has an asking price of $540,000 and generates an annual NOI of $37,800. Is this price reasonable at a 7% cap rate?
- A residential property in NC has a monthly gross rent of $2,400, a vacancy allowance of 5%, and operating expenses of $11,520/year. What is the annual NOI?
- A property is listed at $445,000 and sells for 98% of the list price. The actual sale price is:
- A buyer in NC makes a 20% down payment on a $510,000 home. They finance the balance at 6.5% annually. The first month's interest payment is:
- A NC property taxes are paid in arrears. If the annual tax bill is $4,380 and closing occurs on July 1, the seller's prorated tax obligation (for Jan 1–Jun 30 = 181 days) is approximately:
- A NC landlord's annual income from a 12-unit building is $156,000. Annual expenses total $62,400. The NOI is:
- A property with an NOI of $93,600 and a cap rate of 7.8% has an estimated value of:
- A buyer in NC offers to purchase a property subject to a financing contingency of $260,000 at 6% for 30 years. If the appraised value comes in at $270,000 and the purchase price is $280,000, how much must the buyer pay above the appraised loan base?
- A NC seller owes a mortgage balance of $198,000 and the home sells for $310,000. After paying 6% commission and $620 in excise tax, how much does the seller net before other closing costs?
- A Raleigh-Durham area home sells for $625,000. What is the NC excise tax?
- A buyer finances $340,000 at 7% for 30 years. The monthly payment (P&I) using the factor of $6.65 per $1,000 financed is approximately:
- A seller in NC wants to net $400,000 after paying a 6% commission. What must the sale price be (rounded to nearest dollar)?
- A NC property appraiser finds three comparable sales adjusted to $285,000, $291,000, and $288,000. The most likely indicated value for the subject is:
- A NC landlord owns a 24-unit apartment complex. Average monthly rent is $950. If the vacancy rate is 8.33% (2 units vacant), the monthly effective gross income is approximately:
- A NC property manager receives $4,500/month in rents. At a 10% management fee, the monthly management fee is:
- A buyer in NC makes a 5% down payment on a $320,000 home. The down payment amount and loan amount are:
- A NC investor purchases a property for $500,000 and expects it to appreciate 4% per year. What would the estimated value be after 2 years?
- A NC commercial property has a potential gross income of $180,000, a 6% vacancy loss, and operating expenses of $54,000. The NOI is:
- An investment property in NC sells for $750,000. The selling broker earns 2.5% and the listing broker earns 2.5% commission. What is each broker's total commission?
- A property in NC has a list price of $599,000 and sells for 97% of list price. The final sale price is:
- A property in NC has a capitalization rate of 8.5% and an NOI of $68,000. The estimated value is:
- A NC investor pays $50,000 for a vacant lot and builds a house for $200,000. After selling for $295,000, the gross profit is:
- A NC investor's property generates $2,800/month in rent with a 5% vacancy rate and $9,500/year in operating expenses. The annual NOI is:
- A NC buyer finances $380,000 at 6.75% annual interest for 30 years. Using a factor of $6.49 per $1,000, the monthly P&I payment is:
- A NC listing agent offers a 6% commission on a $499,000 property. The total commission is:
- A homebuilder in NC builds homes for $180 per square foot. A 2,400 sq ft home would cost to build:
- A NC property taxes are paid in arrears. The annual tax is $5,110 and closing occurs September 30. What is the seller's share of taxes (Jan 1 through Sept 30 = 273 days)?
- An NC commercial lease is $22 per square foot NNN for 3,200 sq ft. Annual base rent is:
- A NC investor buys an apartment building for $1,800,000. The annual NOI is $126,000. The overall cap rate is:
- A buyer in NC puts down 10% on a $475,000 home. They pay 2 discount points at closing. The total cost of the 2 points is:
- A 6-unit NC apartment building has a potential gross income of $84,000/year. Vacancy is 8%, operating expenses are $28,000. What is the NOI?
- A NC home is appraised at $350,000. The buyer obtains an 80% LTV conventional loan. The down payment and loan amount are:
- A broker's commission is 6% on a $395,000 sale. The listing firm gets 60% of the commission and the selling firm gets 40%. The listing firm receives:
- An NC developer buys a 5-acre parcel for $200,000. After subdividing into 10 lots, each lot's land cost basis is:
- A NC homeowner paid $265,000 for their home 8 years ago. It is now appraised at $355,000. The percentage increase in value is approximately:
- A NC investment property has an asking price of $650,000 and an NOI of $45,500. The implied cap rate is:
- A NC listing agent negotiates a 5.5% commission on a $679,000 sale. The listing firm earns 55% of the total commission. The listing firm's share is:
- A NC property's annual effective gross income is $108,000. Operating expenses total $43,200. What is the operating expense ratio?
- A NC buyer offers $328,500 on a home listed at $339,900. This offer is what percentage below list price?
- A NC property generates $3,600/month gross rent with an 8% vacancy rate. Annual operating expenses are $14,400. What is the annual NOI?
- A NC buyer's annual income is $85,000. Using a 28% front-end housing ratio, the maximum monthly PITI payment would be:
- A NC seller accepts an offer for $415,000 with a 6% commission. After the commission, excise tax ($830), and $4,200 in closing costs, the seller's net proceeds from a mortgage payoff of $225,000 would be:
- A property sold for $285,000 in North Carolina. What is the excise tax owed by the seller?
- A broker earns a 6% commission on a $410,000 sale and splits 50/50 with their firm. The broker then pays their supervising broker 20% of the broker's share. How much does the broker keep?
- A home in Raleigh was purchased for $320,000 and sold 4 years later for $384,000. What was the percentage appreciation over the 4 years?
- A property in Asheville generates monthly rent of $2,200. Using a GRM of 145, what is the estimated property value?
- A commercial property in Durham has an NOI of $78,000 and sold for $975,000. What is the capitalization rate?
- A buyer obtains a $240,000 mortgage at 6% annual interest. What is the first month's interest payment?
- A lender requires a maximum 80% LTV on a conventional loan. The appraised value is $350,000 and the purchase price is $340,000. What is the maximum loan amount?
- A property has 200 front feet and 150 feet of depth. Using front footage pricing of $400 per front foot, what is the estimated land value?
- A building in Wilmington, NC has a replacement cost of $420,000 and has depreciated 25%. The lot is worth $85,000. What is the indicated value via the cost approach?
- A seller in NC nets $182,000 after paying a 6% commission on the sale price and $4,000 in other closing costs. What was the approximate sale price?
- An investor in the Outer Banks buys a vacation rental property for $650,000. The property generates $52,000 annual gross income and has annual expenses of $20,800. What is the cap rate?
- Using the 28% front-end ratio, a buyer with a gross monthly income of $7,500 can qualify for a maximum monthly housing payment (PITI) of:
- A home in Charlotte sells for $490,000. The seller pays a 5.5% brokerage commission and $3,200 in other closing costs. What are the seller's total transaction costs?
- A rental property generates $36,000 annual gross income with a 5% vacancy rate. Operating expenses are $14,000. If the cap rate is 7%, what is the estimated value?
- An investor purchases a 6-unit apartment building in Fayetteville for $540,000. Monthly rent per unit is $750. What is the Gross Rent Multiplier (GRM)?
- A property in NC has a tax value of $225,000. The county tax rate is $0.62 per $100 of assessed value. What is the annual property tax?
- A NC broker earned a total of $45,000 in commissions last year. Their monthly business expenses averaged $1,200. What were their annual net earnings before personal taxes?
- A home in Durham appreciates at 4% annually. If its current value is $285,000, what will it be worth in 3 years?
- A commercial property in NC generates annual NOI of $120,000. Similar properties sell at a 6.5% cap rate. What is the estimated market value?
- A buyer in NC makes a 20% down payment on a $375,000 home. The lender charges 1.5 origination points on the loan. How much are the origination fees?
- A property manager charges an 8% management fee on collected rent. In a month when only $8,500 of the $9,000 due rent was collected, how much is the management fee?
Property Ownership
135 questions- In North Carolina, a life estate grants the life tenant the right to:
- Which type of deed provides the buyer with the LEAST protection?
- In North Carolina, which of the following is a characteristic of tenancy in common?
- A lien is best described as:
- In North Carolina, the homestead exemption protects a homeowner's primary residence from:
- Which type of ownership in North Carolina gives a married couple automatic right of survivorship?
- In a tenancy in common, each co-owner:
- A fee simple absolute estate in North Carolina is:
- A life estate in North Carolina grants the life tenant the right to:
- What is an easement appurtenant in North Carolina?
- Which of the following would terminate an easement in North Carolina?
- A deed restriction (restrictive covenant) in North Carolina:
- In North Carolina, adverse possession requires the use to be all of the following EXCEPT:
- What is the statutory period for adverse possession in North Carolina?
- A mechanic's lien in North Carolina is a type of:
- Real property in North Carolina includes all of the following EXCEPT:
- The MARIA test for fixtures in North Carolina evaluates:
- In North Carolina, a condominium owner owns:
- A cooperative (co-op) differs from a condominium in that co-op residents:
- An encroachment in North Carolina occurs when:
- A license (as opposed to an easement) in real property law is:
- In North Carolina, a real estate deed must contain all of the following to be valid EXCEPT:
- Which of the following is a government power affecting real property in North Carolina?
- Escheat in North Carolina means:
- An 'air lot' in North Carolina is a type of ownership that refers to:
- In North Carolina, 'intestate succession' refers to how property passes when:
- A devisee in a North Carolina will is a person who:
- Which of the following BEST describes a leasehold estate?
- A periodic tenancy in North Carolina:
- A tenancy at will in North Carolina is one in which:
- A tenancy at sufferance occurs when:
- Mineral rights in North Carolina may be:
- The doctrine of 'prior appropriation' for water rights is used primarily in:
- Riparian rights in North Carolina allow a property owner whose land borders a stream or river to:
- A North Carolina homestead exemption primarily protects:
- Under North Carolina's 'race-notice' recording statute, a subsequent buyer is protected against a prior unrecorded conveyance if the subsequent buyer:
- In North Carolina, 'tenancy in common' means co-owners:
- Which form of co-ownership includes the right of survivorship and is available only to legally married spouses in North Carolina?
- A 'general warranty deed' in North Carolina provides:
- A 'special warranty deed' in NC limits the grantor's warranty to:
- Adverse possession in NC allows a person who occupies land without permission to gain title after how many years of continuous, open, hostile, and actual possession?
- The NC Condominium Act governs condominiums created after:
- The NC Planned Community Act (Chapter 47F) applies to residential planned communities created after:
- A 'life estate' in North Carolina grants the life tenant the right to:
- An 'easement appurtenant' in NC benefits:
- An 'easement in gross' in NC benefits:
- A 'restrictive covenant' in a NC subdivision deed restriction:
- Under NC's NC Homeowners Association Act (Chapter 47F), an HOA has the authority to:
- A 'fee simple absolute' estate in NC is best described as:
- When a fee simple defeasible estate in NC is violated, the property:
- What is 'constructive notice' in NC property law?
- A 'quitclaim deed' in NC conveys:
- Under NC law, a 'lien' on real property is best described as:
- Under NC law, judgment liens attach to:
- A 'survey' of a NC property serves to:
- The 'metes and bounds' method of property description in NC uses:
- A property described as 'Lot 14, Block B, Sunny Acres Subdivision, Wake County, NC' uses which type of legal description?
- In NC, an 'encroachment' occurs when:
- A 'riparian right' in NC gives a landowner who owns property adjacent to a non-navigable stream the right to:
- Under NC law, 'intestate succession' determines how property passes when a person dies:
- A 'devise' in NC property law refers to:
- In NC, a 'fee simple subject to condition subsequent' differs from a 'fee simple determinable' in that:
- A 'license' (in property law, not real estate licensing) differs from an easement in that a license:
- In NC, a 'subordination agreement' in mortgage financing allows:
- NC General Statutes Chapter 47C (NC Condominium Act) grants unit owners the right to:
- Which of the following best describes 'escheat' under NC law?
- In NC, a 'tenancy at will' is a leasehold created when:
- A 'tenancy at sufferance' in NC arises when:
- Under NC law, an 'easement by prescription' is similar to adverse possession in that it requires:
- In NC, a 'deed restriction' and a 'zoning ordinance' are both land use controls. A key difference is:
- The NC Planned Community Act (Chapter 47F) requires residential HOAs to:
- In NC, which of the following best describes a 'dominant tenement' in an easement appurtenant relationship?
- A 'partition action' in NC allows:
- In NC, a 'remainder interest' in a life estate goes to:
- A NC 'homestead exemption' for property taxes provides:
- In NC, a 'declaration of condominium' must be recorded before:
- In NC, a 'proprietary lease' in a cooperative (co-op) gives the shareholder the right to:
- NC General Statutes Chapter 39 governs conveyances of real property. Under this chapter, a deed conveying real property must be:
- A 'declaration of covenants, conditions, and restrictions' (CC&Rs) in a NC planned community is recorded to:
- The NC Homeowners Association Act (Chapter 47F) requires HOAs to provide unit owners with how many days' notice before a special assessment?
- In NC, a 'notice of lis pendens' (pending litigation) recorded against a property:
- A NC property owner who grants a 'conservation easement' to a land trust gives up the right to:
- NC's Equitable Distribution law (G.S. Chapter 50) in a divorce determines how:
- In NC, a 'tax deed' is issued when property is sold by the government due to:
- A 'warranty of habitability' implied in NC residential leases means the landlord warrants that:
- In NC, a property transferred through 'intestate succession' to multiple heirs who do not divide it creates:
- A NC property owner who grants permission to a neighbor to park in their driveway each day on a handshake creates:
- In NC, an 'in rem' tax foreclosure proceeding is an action against:
- In NC, a 'mineral rights' reservation in a deed means:
- A 'certificate of occupancy' (CO) in NC indicates that:
- In NC, the right of 'quiet enjoyment' in a lease means the tenant has the right to:
- Under NC's Marketable Title Act, a person who has held an unbroken chain of title for 30 years or more has a marketable title that is:
- In NC, a 'boundary line agreement' between neighboring property owners is typically used to:
- NC recognizes which of the following types of property as 'real property'?
- A 'fixture' in NC real estate is personal property that has become real property by being permanently attached to the land or building. To determine if an item is a fixture, courts look at all EXCEPT:
- A 'survey plat' recorded in a NC county's Register of Deeds serves to:
- When a NC property is transferred by 'descent and distribution' (intestate succession), a new deed:
- In NC, a 'developer's public offering statement' under the NC Condominium Act (Chapter 47C) must be provided to a buyer before:
- In NC, a 'revocable living trust' is often used in real estate to:
- When a NC condominium association files a lien for unpaid assessments, the association may foreclose the lien under:
- In NC, 'pur autre vie' is a type of life estate that lasts for:
- A 'deed restriction' that requires a property to be used only for single-family residential purposes runs with the land, meaning:
- In NC, an 'air rights' estate allows the owner to:
- In NC, the NC Homeowners Association Act (Chapter 47F) was designed to apply to which type of community?
- Under NC law, a 'declaration of homestead' provides limited protection against creditor claims. This protection is governed by:
- Under NC law, the doctrine of 'constructive notice through possession' means that:
- When a NC condominium unit owner wants to sell their unit, they must ensure the condo association:
- Under NC law, a 'foreclosure by action' (judicial foreclosure) differs from a 'power of sale foreclosure' in that:
- When a NC deed is executed 'to John Smith and Mary Smith, husband and wife,' the default form of co-ownership created is:
- A 'ground lease' in NC for a period exceeding 3 years must be:
- In NC, a 'will' (testament) that devises real property requires which formality to be valid?
- In NC, the 'curtilage' of a property refers to:
- In NC, the 'doctrine of merger' in real estate means that when a buyer receives the deed at closing:
- NC's statute against 'perpetuities' affects real estate by limiting:
- Under NC's transfer on death (TOD) deed statute (effective 2012), a property owner may:
- In NC, what happens to a joint tenancy when one joint tenant sells their interest to a third party?
- Under the NC Condominium Act (Chapter 47C), a declaration of condominium must be recorded in the county where:
- Which type of deed provides the GREATEST protection to the grantee and is most commonly used in NC residential sales?
- In North Carolina, which form of co-ownership includes the right of survivorship but is NOT available between spouses?
- Under the NC Planned Community Act (Chapter 47F), a homeowners' association in a planned community created after October 1, 1998 has authority to:
- A life estate in NC grants the life tenant the right to:
- In North Carolina, 'adverse possession' requires continuous, open, hostile, actual, and exclusive possession for how many years?
- In NC, a 'riparian right' refers to a landowner's right to:
- In NC, a 'fixture' is personal property that has become:
- A 'covenant running with the land' in a NC deed restricts future owners because:
- An 'encroachment' occurs in NC when:
- Under the NC Condominium Act (Chapter 47C), owners of condominium units own:
- Which type of tenancy in NC requires all four unities of possession, interest, time, and title?
- Under NC eminent domain law, the government must pay 'just compensation' to a property owner which is defined as:
- In NC, what is the legal effect of recording a deed in the county register of deeds?
- In NC, the 'doctrine of constructive notice' means a buyer is responsible for knowing:
- In NC, a 'special warranty deed' provides the grantee with warranty protection only against:
- In NC, a 'fee simple determinable' estate automatically terminates and reverts to the grantor when:
- Under the NC Condominium Act (Chapter 47C), the 'common elements' of a condominium include all EXCEPT:
- In NC, an 'easement by prescription' is similar to adverse possession but involves:
Finance
131 questions- A conventional loan is best described as:
- Private Mortgage Insurance (PMI) is typically required on conventional loans when the down payment is less than:
- A deed of trust differs from a mortgage primarily because it:
- Which type of mortgage allows the borrower to pay only interest during the loan term, with the full principal due at maturity?
- A North Carolina buyer's monthly payment is $1,800 and their gross monthly income is $5,400. What is their front-end (housing) ratio?
- What is the purpose of RESPA (Real Estate Settlement Procedures Act) in a North Carolina transaction?
- A borrower in North Carolina has a gross monthly income of $5,500 and monthly debts of $800. What is the maximum monthly housing payment allowed under a 28% front-end DTI ratio?
- An adjustable-rate mortgage (ARM) in North Carolina typically has an initial rate that is:
- Discount points on a mortgage loan are used to:
- A North Carolina buyer is purchasing a $300,000 home with 5% down. What is the loan amount?
- What is the purpose of Private Mortgage Insurance (PMI) in a conventional loan?
- Under TRID rules, within how many business days must a lender provide a Loan Estimate after receiving a complete loan application?
- An FHA loan in North Carolina requires a minimum down payment of:
- Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers?
- A seller in North Carolina agrees to pay 3 discount points on the buyer's $250,000 loan. How much will the seller pay?
- An assumable mortgage allows the buyer to:
- A VA loan in North Carolina is available to eligible veterans and offers:
- A USDA Rural Development loan in North Carolina is designed for:
- What is the purpose of an escrow account held by a mortgage servicer?
- Pre-payment penalties on mortgages in North Carolina:
- The loan-to-value (LTV) ratio is calculated as:
- In North Carolina, which of the following best describes a purchase-money mortgage?
- An interest-only loan in North Carolina requires the borrower to:
- The Loan Estimate provided under TRID includes all of the following EXCEPT:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on:
- A 'balloon payment' mortgage in North Carolina requires:
- Regulation Z (Truth in Lending) requires that if any specific credit term is advertised, the advertisement must include all of the following EXCEPT:
- Which federal agency insures FHA mortgage loans?
- What is the primary difference between Fannie Mae and Freddie Mac?
- The Home Mortgage Disclosure Act (HMDA) requires lenders to:
- A 'conforming loan' in North Carolina is one that:
- The secondary mortgage market in real estate primarily involves:
- A 'reverse mortgage' in North Carolina is available to homeowners who are:
- The debt-to-income (DTI) ratio most commonly used by conventional lenders for total monthly obligations should generally not exceed:
- Which statement about the Closing Disclosure is TRUE?
- North Carolina is primarily a 'deed of trust' state rather than a 'mortgage' state. What is the key difference?
- North Carolina allows non-judicial (power of sale) foreclosure. During this process, how long is the upset bid period after the foreclosure sale?
- The Truth-in-Lending Act (TILA) requires lenders to disclose the:
- The NC Homeowner and Homebuyer Protection Act provides protections for distressed homeowners from:
- A 'loan-to-value ratio' (LTV) of 80% on a $300,000 North Carolina property means the loan amount is:
- Private Mortgage Insurance (PMI) is typically required on conventional loans when the LTV exceeds:
- Which federal law requires lenders to provide the Loan Estimate to a borrower within 3 business days of receiving a loan application?
- A North Carolina 'balloon mortgage' is characterized by:
- Under RESPA, a kickback or referral fee paid between settlement service providers is:
- A 'conventional loan' in NC refers to a mortgage that is:
- A VA-guaranteed loan is available to:
- An 'adjustable-rate mortgage' (ARM) in NC features:
- The primary purpose of the Community Reinvestment Act (CRA) is to:
- A USDA Rural Development loan in NC is designed for buyers:
- A 'points' charge on a NC mortgage loan represents:
- The 'debt-to-income ratio' (DTI) used by NC mortgage lenders compares:
- A 'second mortgage' or 'junior lien' in NC is characterized by:
- An 'alienation clause' (due-on-sale clause) in a NC deed of trust requires:
- A 'wraparound mortgage' in NC involves:
- Regulation Z (Truth in Lending) requires that the APR (Annual Percentage Rate) in a mortgage advertisement is triggered when a lender advertises which specific credit term?
- The 'Dodd-Frank Act' introduced the concept of a 'Qualified Mortgage' (QM). A key feature of a QM loan is:
- An 'interest-only loan' in NC means the borrower's monthly payment:
- The NC Commissioner of Banks regulates which of the following?
- The maximum conforming loan limit for a single-family home (as set by FHFA and applicable in most NC counties) represents:
- Under the Home Equity Loan Consumer Protection Act, homeowners have a right of rescission for how many business days after signing a home equity loan?
- A 'hard money loan' in NC real estate is characterized by:
- The 'secondary mortgage market' in NC real estate involves:
- The federal Homeowners Protection Act (HPA) requires lenders to automatically cancel PMI on a conventional loan when the LTV reaches:
- A 'negative amortization' loan in NC means:
- A NC 'bridge loan' is used primarily to:
- A NC lender must provide the Closing Disclosure how many business days before the loan consummation date?
- A NC borrower's 'debt-to-income ratio' for conventional mortgage qualification generally should not exceed approximately:
- The secondary mortgage market institution 'Fannie Mae' (Federal National Mortgage Association) primarily:
- A 'home equity line of credit' (HELOC) in NC is best described as:
- A NC 'construction loan' typically converts to a permanent mortgage at:
- The 'primary mortgage market' in NC consists of:
- A NC lender's 'origination fee' on a mortgage loan represents:
- Under RESPA, a 'controlled business arrangement' (affiliated business arrangement) must be disclosed when:
- A 'participation mortgage' in NC commercial real estate allows the lender to:
- Which of the following loan features was specifically targeted by the Dodd-Frank Act's 'Ability to Repay' rule?
- NC's Predatory Lending Law (NC General Statutes Chapter 24) provides additional protections beyond federal law for:
- A NC 'reverse mortgage' allows qualifying homeowners to:
- A NC lender who uses 'redlining' in mortgage lending decisions is guilty of:
- The Federal Reserve's monetary policy decisions affect NC mortgage interest rates primarily because:
- NC's 'anti-predatory lending' provisions under G.S. Chapter 24 restrict which loan features on certain high-cost residential loans?
- A NC 'blanket mortgage' covers:
- A NC 'purchase money mortgage' (PMM) is one where:
- A 'short-term mortgage' (balloon loan) differs from a fully amortizing loan in that the:
- When a NC borrower refinances their home, TILA provides a 3-business-day right of rescission. This applies to:
- A NC 'swing loan' (bridge loan) is used when a buyer needs to purchase before their current home sells. The risk of this financing strategy is:
- A NC adjustable-rate mortgage has an initial 'teaser rate' period. After the fixed period ends, the rate adjusts based on:
- In NC, a lender's 'lock-in agreement' on a mortgage rate means:
- An 'assumable mortgage' in NC allows:
- An 'escrow account' (impound account) maintained by a NC mortgage lender collects monthly deposits for:
- Under the NC Foreclosure Prevention Act, lenders must provide a Notice of Pre-Foreclosure Options to borrowers in default at least how many days before filing for foreclosure?
- A NC lender charging a borrower a prepayment penalty on a residential mortgage is most restricted under:
- A NC 'non-QM' (non-qualified mortgage) loan may be appropriate for:
- An 'amortized loan' in NC means the loan is repaid through:
- The NC Housing Finance Agency (NCHFA) provides which type of assistance to homebuyers?
- Under NC law, a person who provides real estate financing (makes mortgage loans) must hold what type of license?
- When a NC lender 'calls' a loan (demands immediate full payment), it is exercising a(n):
- NC's 'Home Advantage Mortgage' program offered by NCHFA is specifically designed for:
- A NC 'cooperative apartment' (co-op) financing differs from condo financing in that the buyer:
- A NC 'land contract' (installment land contract or contract for deed) differs from a regular sale in that:
- A NC borrower who qualifies for a USDA Section 502 loan is most likely purchasing in:
- Which federal act requires mortgage lenders to disclose whether they share nonpublic personal information about borrowers with third parties?
- A NC homebuyer who has a high credit score (780+) compared to a buyer with a credit score of 620 will likely receive a conventional mortgage at:
- The NC Mortgage Lending Act regulates which entities in the mortgage industry?
- A NC 'conforming loan' meets the requirements to be purchased by Fannie Mae or Freddie Mac. These requirements include:
- In NC, a 'purchase money second mortgage' may be used by a seller to:
- Under TRID (TILA-RESPA Integrated Disclosure), what is the maximum number of days a lender may wait before providing a revised Loan Estimate to a borrower after a 'changed circumstance'?
- A 'negative pledge' clause in a NC commercial loan agreement prohibits the borrower from:
- In NC, a 'deed in lieu of foreclosure' has which disadvantage for the borrower compared to a short sale?
- In NC, a 'deficiency judgment' after foreclosure allows a lender to:
- NC's 'Homestead Preservation Act' exempts from creditors which portion of a primary residence's equity?
- Which federal law requires lenders to provide a Loan Estimate within three business days of receiving a mortgage application?
- A homebuyer in NC is applying for an FHA loan. FHA mortgage insurance premium (MIP) differs from PMI in that MIP:
- The NC Mortgage Lending Act is administered by which state agency?
- A 'buydown' in NC mortgage financing refers to:
- A VA loan in NC is guaranteed by the Department of Veterans Affairs. One major benefit is that eligible veterans:
- What is the purpose of the Closing Disclosure (CD) under TRID rules?
- Under RESPA, a kickback or unearned fee in connection with a federally related mortgage loan is:
- A 'second mortgage' or 'home equity loan' in NC is characterized as:
- Which federal law prohibits discrimination in mortgage lending based on race, color, religion, national origin, sex, disability, or familial status?
- Under the Community Reinvestment Act (CRA), banks are evaluated on their:
- Which type of mortgage adjusts the interest rate periodically based on a specified index?
- A 'piggyback loan' in NC mortgage financing involves:
- The annual percentage rate (APR) on a mortgage is HIGHER than the stated interest rate because APR includes:
- A homebuyer receives a Loan Estimate and notices the origination charges are significantly higher than what the lender verbally quoted. Under TRID, which fees are subject to a 0% tolerance (cannot increase at closing)?
- A 'reverse mortgage' in NC allows homeowners who are typically 62 or older to:
- The 'debt-to-income' (DTI) ratio used in NC mortgage qualification includes:
- A NC homebuyer with limited cash uses an 'FHA 203(k)' loan to purchase a fixer-upper. This loan product allows buyers to:
- Which federal act requires lenders to provide borrowers with a Good Faith Estimate and Truth-in-Lending disclosure for mortgage loans (pre-TRID, still relevant for HELOC and reverse mortgages)?
- A 'construction loan' in NC typically converts to a permanent mortgage upon:
- In NC, 'seller financing' or a 'purchase money mortgage' occurs when:
- A 'balloon mortgage' in NC is characterized by:
Contracts
122 questions- The North Carolina Offer to Purchase and Contract is a standard form approved by:
- In North Carolina, the 'due diligence fee' paid at the time of an offer is:
- The 'due diligence period' in a North Carolina purchase contract is the time during which:
- Under the North Carolina Offer to Purchase, the earnest money deposit (EMD) is:
- What is the legal effect of time being 'of the essence' in a North Carolina real estate contract?
- A North Carolina contract is 'executory' when:
- In North Carolina, which contract form is most commonly used for residential real estate transactions?
- Under the NC Standard Form 2-T, the 'Due Diligence Fee' is paid:
- The 'Due Diligence Period' in a North Carolina real estate contract allows the buyer to:
- In North Carolina, if a buyer terminates a contract AFTER the Due Diligence Period expires without a valid contractual reason, they:
- A contract for the sale of real estate in North Carolina must be in writing to be enforceable under:
- Under a North Carolina listing agreement, the broker earns a commission when:
- Which of the following is NOT an essential element of a valid real estate contract?
- An option contract in North Carolina:
- A counteroffer in North Carolina real estate:
- In North Carolina, earnest money must be deposited into the broker's trust account within:
- Rescission of a real estate contract in North Carolina means:
- Specific performance as a remedy in a North Carolina real estate contract requires:
- Liquidated damages in a North Carolina real estate contract are:
- An addendum to a North Carolina real estate contract:
- A contract contingency in North Carolina allows the buyer to:
- The North Carolina Residential Property and Owners Association Disclosure Statement (RPOADS) must be provided to buyers of:
- If a seller fails to provide the RPOADS before a buyer makes an offer in North Carolina, the buyer may:
- An 'as-is' sale in North Carolina means:
- A buyer's offer in North Carolina lapses (expires) when:
- In North Carolina, what is the legal status of an oral agreement to sell real estate?
- The standard North Carolina Offer to Purchase and Contract form is jointly approved by which organizations?
- In North Carolina, the 'due diligence fee' paid at contract execution is:
- The 'due diligence period' in the NC Offer to Purchase and Contract allows the buyer to:
- Under the NC Offer to Purchase, if a buyer terminates AFTER the due diligence period without a valid contractual reason, what happens to the earnest money deposit?
- For a real estate contract in North Carolina to be enforceable, it must meet which essential requirement regarding real property?
- A buyer and seller in North Carolina have signed a contract, but closing is delayed because the seller cannot produce clear title. This is an example of:
- Under NC contract law, 'time is of the essence' means:
- A contingency in a North Carolina real estate contract is best described as:
- In NC, an option contract gives the optionee (buyer):
- Which type of listing agreement gives the broker the right to a commission if the property sells, even if the seller finds the buyer themselves?
- An 'as-is' clause in a NC real estate contract means:
- A 'counteroffer' in a NC real estate transaction legally constitutes:
- Which element is NOT required for a valid real estate contract in North Carolina?
- A contract made by a minor (under 18) for the purchase of real estate in NC is generally:
- Under the NC Offer to Purchase, 'earnest money' serves primarily as:
- A 'right of first refusal' in a NC real estate contract gives the holder the right to:
- In NC, 'specific performance' as a remedy for breach of a real estate contract means:
- Under the NC Offer to Purchase, which party typically pays for the home inspection?
- A NC real estate contract is considered 'executed' when:
- An 'executory contract' in NC real estate is one that:
- A 'void contract' in NC is one that:
- Under NC contract law, 'rescission' of a contract restores the parties to:
- A NC listing agreement that does not specify an expiration date is:
- A NC buyer who makes an offer on a property and the seller accepts — then the seller tries to back out without cause — may pursue which remedy?
- A NC broker who prepares a specialized legal document (such as a custom commercial lease) beyond the standard forms may be engaging in:
- Under NC contract law, which of the following is an example of 'liquidated damages'?
- The NC Residential Property Disclosure Statement must be delivered to the buyer before the buyer makes an offer. If not delivered, the buyer may:
- A 'novation' in a NC real estate contract replaces:
- In NC, the doctrine of 'caveat emptor' (buyer beware) has been largely replaced by:
- The NC Offer to Purchase and Contract allows the buyer to terminate during the due diligence period by delivering written termination notice to the seller or seller's agent by:
- A NC seller who accepts an offer but has not yet communicated acceptance to the buyer can:
- The NC Offer to Purchase includes a 'Settlement Date' that represents:
- A NC buyer makes an offer on a Friday. The seller has until Sunday at 5 PM to accept. If the seller's broker calls the buyer's broker on Sunday at 4 PM to verbally accept, is there a binding contract?
- If a buyer in NC makes an offer that includes a 'financing contingency,' closing may be delayed or cancelled if:
- Which of the following would most likely make a NC real estate contract voidable?
- A NC buyer's offer contains a clause stating 'Seller shall make all repairs identified by home inspector.' This is an example of:
- Under NC's standard Offer to Purchase, what happens if the property is substantially damaged by fire between contract acceptance and closing?
- A 'material breach' of a NC real estate contract gives the non-breaching party the right to:
- A NC real estate contract becomes 'binding' when:
- If a NC seller counters an offer and the buyer rejects the counteroffer, the original offer:
- Under NC's Offer to Purchase, the buyer may request the seller to pay some of the buyer's closing costs. This is referred to as a:
- A NC offer to purchase that expires 'at 5:00 PM on Friday' but the seller attempts to accept on Saturday morning:
- An 'addendum' to a NC real estate contract is a document that:
- In NC, 'liquidated damages' provisions in real estate contracts are enforceable if:
- A 'backup offer' in NC real estate is:
- Under the NC Offer to Purchase, the 'earnest money deposit' is held by:
- A NC seller who accepts two offers on the same property (without backup offer provisions) and attempts to close with both buyers has committed:
- Under NC law, which of the following is NOT a remedy for breach of a real estate purchase contract?
- A NC seller who receives an offer during the due diligence period with a contingency to sell their current home is encountering which type of provision?
- A NC buyer submits an offer with a 15-day due diligence period and a $5,000 due diligence fee. On day 10, the buyer discovers the foundation has serious cracks costing $40,000 to repair. The buyer should:
- In NC, a lease for more than 3 years to be binding must be:
- Under NC contract law, if one party to a real estate contract is declared incompetent by a court, the contract is:
- NC's 'Parol Evidence Rule' prevents parties to a written real estate contract from:
- Under the NC Offer to Purchase, the due diligence fee is paid:
- An NC 'letter of intent' (LOI) in a commercial real estate transaction is generally:
- In NC, when a seller accepts an offer but the buyer's lender cannot fund the loan on the agreed closing date, and time is of the essence, the most likely outcome is:
- A NC buyer who discovers during due diligence that the property has a deed restriction prohibiting commercial use should:
- Under NC's NC Offer to Purchase (Form 2-T), 'occupancy' (possession) typically transfers to the buyer:
- A NC real estate contract that lacks 'consideration' is:
- A NC real estate transaction where the closing attorney discovers the seller's deed was fraudulently obtained should result in:
- Under NC law, 'mutual assent' (a 'meeting of the minds') in a contract is demonstrated by:
- A NC buyer who wants to purchase both a building and the seller's business equipment (FF&E — furniture, fixtures, and equipment) must ensure:
- A NC seller's 'right to continue to market the property' during a pending contract with a home sale contingency is known as a:
- A NC real estate sales contract is a contract for the 'sale of an interest in real property.' Under the Statute of Frauds, to be enforceable, this contract MUST be:
- Under NC law, a broker's listing agreement that has not yet expired but the seller instructs the broker to stop all marketing activity must result in:
- Under NC's NC Offer to Purchase, who is responsible for paying the buyer's closing costs (loan origination fees, title insurance, etc.) by default?
- A NC offer that includes an 'escalation clause' means:
- A NC contract for the sale of commercial real estate that is not in writing but is partially performed (e.g., buyer has taken possession and made improvements) may be:
- A NC real estate transaction in which the seller's agent prepares an offer for a buyer (who has no agent) raises concerns about:
- Under NC law, if a seller dies after signing a purchase contract but before closing, the contract:
- A NC buyer and seller agree verbally on a sale price but have not yet executed a written contract. This verbal agreement is:
- Under NC law, a court may refuse to enforce an 'unconscionable' contract provision. An unconscionable provision is one that is:
- A NC purchase contract that contains an 'integration clause' (entire agreement clause) means:
- Under NC's Residential Rental Agreements Act, a residential lease for more than 1 year that is NOT in writing is:
- Under NC's 'mutual mistake' doctrine, if both buyer and seller mistakenly believe a property is 4 acres when it is actually 3 acres, the contract may be:
- The Offer to Purchase and Contract in North Carolina is a standardized form jointly approved by which organizations?
- In the NC Offer to Purchase and Contract, the 'Due Diligence Period' allows the buyer to:
- If a buyer in NC makes an offer with a due diligence fee of $2,000 and an earnest money deposit of $5,000, and then terminates during the due diligence period, what happens?
- Which of the following would make a real estate contract VOID (not merely voidable) in North Carolina?
- Under the NC Offer to Purchase, the seller's failure to respond to an offer by the agreed-upon deadline results in:
- In NC real estate, 'time is of the essence' in a contract means:
- In NC, the 'due diligence fee' in the Offer to Purchase is best characterized as:
- In NC, which type of contract is required for a real estate sales agreement to be enforceable?
- In NC, the legal remedy of 'specific performance' in a real estate contract means:
- An NC buyer signs an Offer to Purchase and inserts a 'loan contingency' clause. This contingency protects the buyer by:
- In NC, if the seller accepts an offer and later receives a higher offer, the seller:
- An NC purchase contract includes a contingency that the buyer must sell their current home before closing. If the buyer cannot sell in time, the buyer may:
- In NC, a seller's counteroffer to a buyer's original offer creates:
- In NC, the earnest money deposit on a residential purchase is typically held by:
- In NC, the 'integration clause' (merger clause) in a real estate contract means:
- In NC real estate, 'rescission' of a contract means:
- Which of the following is an example of 'accord and satisfaction' in a NC real estate context?
- In NC, a seller's disclosure of property condition is made using the:
- In NC, 'liquidated damages' in a purchase contract typically refer to:
- In NC, the right of 'first refusal' in a real estate context gives a party:
- In NC, the standard Offer to Purchase specifies that risk of loss if the property is damaged before closing falls upon:
Property Valuation
120 questions- In the sales comparison approach, a positive adjustment to a comparable sale means:
- Highest and best use is defined as the use that is:
- What is the gross rent multiplier (GRM) for a property that sells for $180,000 and rents for $1,500 per month?
- Plottage value refers to:
- The sales comparison approach to value is most appropriate for:
- An adjustment in the sales comparison approach for a feature the subject property HAS but the comparable does NOT have requires the appraiser to:
- The income approach to value uses which formula?
- In the cost approach, what does accrued depreciation include?
- A property generates $18,000 annual net operating income and the market cap rate is 6%. What is the indicated value?
- What is the principle of substitution in real estate?
- Functional obsolescence in a property might be caused by:
- External (economic) obsolescence in real estate is characterized as:
- A comparable sale closed 6 months ago at $300,000 and the market has appreciated 1% per month since then. What is the time-adjusted price?
- The gross rent multiplier (GRM) for a property that sells for $240,000 and rents for $1,600/month is:
- The principle of contribution in real estate appraisal states that:
- Regression in real estate value means:
- Progression in real estate value means:
- Assemblage in real estate refers to:
- A capitalization rate in real estate is:
- Effective gross income (EGI) in an income analysis is calculated as:
- Net operating income (NOI) is calculated as:
- Highest and best use in appraisal is defined as the use that is:
- In the cost approach, reproduction cost is the cost to:
- A property has a replacement cost new of $400,000, accumulated depreciation of $60,000, and land value of $75,000. What is the cost approach value?
- Paired sales analysis in the sales comparison approach is used to:
- The principle of conformity in real estate value states that:
- An appraiser in North Carolina using the income approach would NOT include which of the following in operating expenses?
- The Uniform Standards of Professional Appraisal Practice (USPAP) is issued by:
- A final value opinion in a real estate appraisal is derived by:
- Plottage value in real estate refers to:
- Market value in a real estate appraisal assumes all of the following EXCEPT:
- The economic life of an improvement is the period during which:
- A building has an effective age of 15 years and an economic life of 50 years. What is the depreciation rate using the age-life method?
- An appraiser estimates a home's replacement cost new at $350,000, total depreciation of 25%, and land value of $80,000. What is the cost approach value?
- The income approach to value is most appropriate for which type of NC property?
- The sales comparison approach to value relies primarily on:
- In NC real estate, 'gross rent multiplier' (GRM) is calculated as:
- Depreciation in the cost approach to real estate valuation refers to:
- Which type of depreciation in real estate CANNOT be cured by the owner?
- A property in Raleigh, NC has a net operating income of $48,000 and the market capitalization rate is 8%. Its estimated value using the income approach is:
- In NC, county property tax assessments are supposed to reflect what percentage of market value?
- The principle of 'substitution' in real estate appraisal states that:
- An appraisal of a home in Charlotte, NC comes in $15,000 below the contract price. The most likely outcome is:
- Which appraisal approach is typically given the most weight when appraising a single-family home in Greensboro, NC?
- The 'highest and best use' of a property in NC appraisal practice is defined as the use that is:
- In the cost approach, 'reproduction cost' differs from 'replacement cost' in that:
- When adjusting comparables in the sales comparison approach, the appraiser adjusts the comparable, not the subject. If a comp has a superior feature, the adjustment is:
- The 'effective age' of a building for appraisal purposes refers to:
- The 'reconciliation' step in an NC appraisal involves:
- Functional obsolescence in a NC property is caused by:
- An 'appraisal' in NC is defined as:
- An appraiser in NC who estimates the value of a proposed new development building uses which approach as the primary method?
- A NC property's capitalization rate is determined primarily by:
- An appraiser who adjusts a comparable's price upward by $5,000 for having one fewer bathroom than the subject property is applying which step of the sales comparison approach?
- A NC property owner who disagrees with their county's property tax assessment may file an appeal with:
- In the cost approach, 'land value' is estimated separately because:
- A NC appraiser performing a 'retrospective appraisal' is estimating the value of a property:
- The principle of 'progression' in real estate appraisal states that:
- In NC appraisal practice, 'paired sales analysis' is used to:
- A NC appraiser's use of 'comparables from the subject's immediate competitive market area' refers to:
- When an appraiser in NC notes that a home has an 'addition' that was built without permits, this is most relevant to which form of depreciation?
- When NC appraisers analyze a residential subdivision lot's value, which method do they typically use?
- A NC appraiser who values a property using data from a declining market (falling prices) will need to make a 'time adjustment' that is:
- NC appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP requires appraisers to provide:
- The principle of 'conformity' in NC real estate value states that:
- The 'before and after' method in NC appraisal is used primarily for:
- The 'economic life' of a building in NC appraisal is defined as:
- In NC, a 'drive-by appraisal' (exterior-only inspection) differs from a full appraisal in that it:
- The 'principle of anticipation' in NC real estate holds that:
- In NC, an 'as-improved' appraisal values the property:
- In NC, an appraiser who values a property for a divorce settlement would be performing a(n):
- In the income approach, 'potential gross income' (PGI) assumes:
- In NC, a 'drive-by appraisal' using only exterior inspection and public records is most commonly used for:
- The 'principle of regression' in NC real estate appraisal states that:
- A NC appraiser's 'workfile' for an appraisal must be retained for how many years?
- When a NC appraiser uses a market extraction method to determine a capitalization rate, they analyze:
- A NC appraiser who determines that a property's highest and best use is for residential development rather than the current agricultural use would reflect this in:
- A NC appraiser who adds value to a comparable for its superior condition compared to the subject is:
- In NC, a Broker Price Opinion (BPO) is most commonly used for:
- In the income approach, the 'overall capitalization rate' (OAR) differs from a 'mortgage capitalization rate' in that the OAR:
- When a NC property produces income, its 'net income multiplier' (NIM) is calculated as:
- NC appraisers are required to be licensed or certified by which state body?
- An 'as-is' appraisal value for a NC property with deferred maintenance reflects:
- The 'gross income multiplier' (GIM) using annual income for an NC commercial property is calculated as:
- An NC appraiser analyzing a condominium uses which modification to the sales comparison approach?
- A NC appraiser who is hired by a buyer's lender has their primary client relationship with:
- An NC appraiser who over-values a property to help a borrower qualify for a loan has committed:
- The 'principle of contribution' in NC appraisal holds that:
- In NC, a 'fee simple absolute' interest has what effect on appraisal value compared to a 'fee simple subject to restriction'?
- The 'economic characteristics' of an income-producing property that affect its NC appraisal include:
- The 'market area' for appraising a single-family home in the NC mountains near Asheville would typically be defined as:
- An NC appraiser's opinion of value must be 'credible' according to USPAP. Credible means the value conclusion is:
- The 'absorption rate' in a NC real estate market refers to:
- A 'fee appraiser' in NC is different from an 'in-house' appraiser in that a fee appraiser:
- A NC appraisal that states the value 'as of' a specific date is reporting the property's value:
- In NC, an appraiser who is pressured by a lender to 'hit' a predetermined value should:
- An NC appraiser who evaluates a 'going concern value' for a hotel property is valuing:
- In NC, a 'mass appraisal' is performed by county assessors for:
- In NC appraisal practice, a 'retrospective appraisal' is commonly needed for:
- In the cost approach, what term describes the loss in value due to factors outside the property boundaries, such as a nearby industrial plant?
- An appraiser is using the income approach to value a small apartment building. The property generates $96,000 annual gross income and has a 10% vacancy rate, operating expenses of $30,000, and a cap rate of 8%. What is the indicated value?
- When appraising a single-family home in the Research Triangle Park area of NC, an appraiser gives MOST weight to which approach?
- The 'principle of substitution' underpins which appraisal approach?
- When performing a site analysis for a residential property in Charlotte's Myers Park neighborhood, an appraiser would consider all EXCEPT:
- In NC, a property's 'tax value' (assessed value) is used to determine property tax liability. For ad valorem tax purposes, properties should be assessed at:
- In NC, an appraisal performed for a federally related transaction must be performed by a state-certified or state-licensed appraiser and must comply with:
- In the sales comparison approach, an adjustment is made for a feature the comparable has but the subject lacks. This is:
- The 'assemblage' of multiple smaller parcels into one larger parcel may create 'plottage value' because:
- The 'effective age' of a building used in appraisal may differ from its actual (chronological) age because:
- The 'income capitalization approach' is MOST applicable in appraising which type of NC property?
- In NC, the 'highest and best use' of a property is defined as the:
- When appraising a property in the Outer Banks near the NC coast, an appraiser would consider 'functional utility' which includes:
- In NC, 'economic life' of an improvement is:
- An appraiser completing a sales comparison approach for a home in Chapel Hill finds a comparable that sold 8 months ago. The appraiser must make a:
- In the cost approach, 'accrued depreciation' encompasses which of the following?
- A NC appraiser uses 'paired sales analysis' in the sales comparison approach. This technique:
- When appraising a property in NC, the appraiser's opinion of value must reflect the value as of a specific:
- The 'gross rent multiplier' (GRM) method is considered a quick, simplified income approach. It does NOT account for:
- In NC, the NC Appraisal Board licenses appraisers in which categories?
- The 'reconciliation' process in an NC appraisal report involves:
Agency
115 questions- In North Carolina, which type of agency is prohibited?
- In North Carolina, 'dual agency' with written informed consent means the broker:
- A North Carolina buyer's agent owes which of the following fiduciary duties to the buyer?
- When a North Carolina broker represents the seller, they must disclose to buyers:
- Designated agency in North Carolina occurs when:
- Which document in North Carolina establishes the seller's agency relationship and authorizes the broker to market the property?
- When must a North Carolina licensee provide the 'Working with Real Estate Agents' brochure to a prospective buyer?
- The 'Working with Real Estate Agents' brochure in North Carolina explains:
- In North Carolina, a broker who represents the seller owes which duty to the buyer?
- Designated agency in North Carolina means:
- A buyer's agent in North Carolina owes the buyer all of the following EXCEPT:
- In a dual agency situation in North Carolina, a broker may NOT:
- A North Carolina broker who provides services to a buyer without a written buyer agency agreement is acting as:
- Which of the following best describes a material fact a North Carolina broker must disclose?
- In North Carolina, 'informed consent' in a dual agency situation requires:
- Apparent authority in a real estate agency relationship arises when:
- Which of the following best describes a listing broker's duty to disclose a seller's financial distress?
- The agency relationship between a listing broker and seller in North Carolina is created by:
- Under North Carolina rule, when must a buyer's agency agreement be in writing?
- Ratification of an unauthorized agent act in North Carolina occurs when:
- A broker's duty of 'reasonable care and diligence' in North Carolina means:
- In North Carolina, a broker's agency relationship is terminated by all of the following EXCEPT:
- A subagent in North Carolina real estate owes fiduciary duties to:
- Which statement is TRUE regarding material facts in North Carolina real estate?
- North Carolina's 'Working with Real Estate Agents' disclosure brochure must be provided to a prospective buyer or seller:
- In North Carolina, a seller's agent owes which of the following duties to an unrepresented buyer?
- Dual agency in North Carolina occurs when:
- When a North Carolina broker practices designated dual agency, the broker-in-charge:
- Under North Carolina agency law, an agent's duty of confidentiality to the client:
- A North Carolina buyer's agent who discovers a material defect in the property being shown must:
- In North Carolina, the term 'broker-in-charge' (BIC) refers to:
- Which NC disclosure form must sellers of most residential property complete?
- A real estate broker in North Carolina who receives earnest money must deposit it into a trust account within:
- A 'material fact' in North Carolina real estate is best described as:
- An agent who discloses their client's minimum acceptable price to the other party without authorization has violated the duty of:
- A NC buyer's agent has a duty to present all offers to the seller's agent promptly. This duty reflects the fiduciary duty of:
- In NC, a subagency relationship exists when:
- In NC, a 'buyer agency agreement' is a written contract between the buyer and:
- A NC broker who represents neither buyer nor seller but facilitates the transaction is acting as a:
- A listing agent in NC must disclose which of the following to potential buyers even without being asked?
- In NC, a listing broker who also brings a buyer and represents both parties without proper consent is guilty of:
- In NC, a seller who is misled by their listing agent into accepting a lower offer than the property was worth may have a claim against the agent for breach of:
- When a NC seller instructs their listing broker to keep the listing price confidential, the broker must:
- A 'seller's agent' in NC owes the seller the fiduciary duty of loyalty, which means the agent must:
- The NC WWREA disclosure brochure explains which of the following options available to consumers?
- A NC buyer's agent who fails to disclose a known material defect because the seller is also a client (in a dual agency) has violated:
- A NC broker who is a dual agent and is asked by the buyer 'What will the seller take for this property?' should:
- Under NC agency law, the duty of 'obedience' requires the agent to:
- A NC listing broker whose seller is about to sell a property with a defective septic system without disclosing it to the buyer should:
- A NC real estate broker who has a personal financial interest in a property they are recommending to a client must:
- In a NC transaction where a listing broker has no buyer's agent cooperating, and shows the home to an unrepresented buyer, the broker is most likely acting as:
- A 'buyer representation agreement' in NC should specify:
- In NC, a listing agent who fails to present all offers to the seller, selectively withholding low offers, violates the duty of:
- NC real estate brokers who are REALTORS are also bound by the NAR Code of Ethics, which adds which obligation beyond basic license law?
- A NC buyer's broker who has identified a property that perfectly matches the buyer's needs but is listed by their own firm creates what type of agency concern?
- A NC listing broker who learns during a showing that the property has a significant structural issue discovered by the inspector for a different pending offer must:
- The NC WWREA disclosure is required at first substantial contact. 'First substantial contact' is typically defined as:
- When a NC buyer's agent presents an offer on behalf of their buyer, they are fulfilling which fiduciary duty?
- A NC buyer's agent who discovers the property has a history of flooding that was not disclosed on the Seller Disclosure should:
- A NC agent who advises their buyer client to offer a lower price because the seller needs to sell quickly — using seller motivation information the agent gained as a transaction facilitator — has violated the duty of:
- In NC, an agent's duty of 'accounting' requires them to:
- A NC buyer's agent whose buyer wants to submit an offer significantly below the list price should:
- Under NC law, a real estate broker is an agent only if they have:
- A NC seller who tells their listing agent 'don't tell anyone I'm going through a divorce' has invoked their right to:
- A NC listing agent who learns during a home inspection that the property has a faulty electrical panel has a duty to disclose this to:
- Under NC law, an agency relationship created through the conduct of the parties (rather than a written agreement) is called:
- In NC, an 'express agency' is created by:
- Under NC agency law, the term 'principal' refers to:
- In NC, an agent's duty of 'loyalty' is breached when the agent:
- In NC, a 'limited service agreement' with a seller allows the broker to:
- Under NC real estate license law, a broker who represents themselves as having expertise they do not possess may be liable for:
- A NC broker representing a buyer who has an exclusive buyer representation agreement may terminate the agreement early if:
- In NC, a 'transaction broker' (facilitator) who assists both buyer and seller owes which duty to both parties?
- A NC listing broker who receives multiple offers simultaneously should:
- A NC buyer's agent who purchases a property for themselves that their client had expressed interest in has violated:
- A NC seller's agent who is advising the seller on a counteroffer strategy is exercising which duty?
- A NC seller's listing agent who is also a buyer in the transaction creates what type of conflict?
- In NC, a buyer who submits an offer and pays an earnest money check, but no written buyer agency agreement has been signed, has implicitly established what type of relationship?
- A NC broker who represents a seller is approached by the seller's neighbor who wants to buy the property. The broker should:
- A NC broker who fails to provide the Working with Real Estate Agents (WWREA) disclosure at first substantial contact is subject to:
- In NC, who is ultimately responsible for completing the Working with Real Estate Agents disclosure?
- A NC buyer's agent who negotiates the purchase price of a property directly benefits from which fiduciary duty being properly exercised?
- In NC, the buyer in a real estate transaction who chooses not to be represented by an agent is considered a:
- A NC listing broker who also has a personal financial interest in the property being listed (such as being a lender to the seller) must:
- Under NC license law, a 'provisional broker' is specifically restricted from:
- A NC seller's agent who voluntarily discloses to the buyer that the seller is desperate to sell quickly (under financial pressure) has violated the duty of:
- A NC buyer's agent who also works part-time as a home inspector must disclose this dual role to buyer clients because:
- In NC, when the listing agreement expires, the broker's agency relationship with the seller:
- A NC buyer's agent who learns during negotiations that the seller is also represented by a friend of the agent should:
- A NC broker who acts as a transaction broker (facilitator) and is asked by one party to help draft the contract should:
- Under NC license law, can a broker represent a buyer and a seller in the same transaction if both consent?
- Under NC agency law, if a listing broker's associate makes a material misrepresentation to a buyer, the broker-in-charge may be held responsible under the principle of:
- A NC broker's duty to 'present all offers' applies even when:
- A NC broker who is asked to provide a price opinion to a financial institution for a REO (bank-owned) property is providing a:
- In North Carolina, a seller's agent owes which duties to the buyer?
- When must a listing agent provide the 'Working with Real Estate Agents' (WWREA) disclosure brochure to a potential seller client?
- A dual agent in North Carolina must obtain informed written consent from:
- Under the NC real estate agency law, 'designated dual agency' occurs when:
- A buyer's agent in NC owes which of the following fiduciary duties to their buyer client?
- When a real estate firm in NC represents a buyer client, all brokers in the firm are:
- A seller's agent who knows a property's basement floods every spring has a duty to:
- A buyer's agent who learns their client's maximum budget is $400,000 but the buyer told the seller they are limited to $350,000 must:
- Which agency relationship is created when a North Carolina broker shows a buyer a property that the broker also has listed for the seller?
- A listing broker in NC is legally obligated to present all written offers to the seller:
- The NC Working with Real Estate Agents (WWREA) brochure explains that a 'buyer's agent' will:
- In NC, 'subagency' in a real estate transaction traditionally means:
- Under NC agency law, a 'designated agency' arrangement requires the broker-in-charge to:
- A broker in NC may not lawfully pay a referral fee to:
- A NC buyer's agent who finds their buyer is unable to qualify for financing has a duty to:
- Under NC's seller agency, if a buyer makes an oral statement to the listing broker that they are very motivated and willing to go above asking price, the listing broker:
- Under NC law, a broker who is the agent of the seller must disclose to all potential buyers:
- In NC, when must a buyer's agent provide the WWREA brochure to a buyer?
- A real estate broker in NC may represent more than one buyer seeking the same property if:
- A NC broker enters into an Exclusive Buyer Agency Agreement. Under this agreement, the broker is entitled to compensation if:
- The NC WWREA brochure explains three possible agency relationships. Which one is NOT a recognized agency relationship in NC real estate?
Fair Housing
113 questions- North Carolina's fair housing laws protect all seven federal protected classes plus:
- A property manager refuses to rent to a tenant because they use a wheelchair. Which law is violated?
- Under the Fair Housing Act, an advertisement that specifies 'Christians preferred' is:
- Which of the following is an example of reasonable accommodation under the Fair Housing Act?
- The federal Fair Housing Act of 1968 prohibits discrimination based on all of the following EXCEPT:
- Steering in real estate means:
- Blockbusting is an illegal practice where:
- Redlining in mortgage lending involves:
- Under the Fair Housing Act, a person with a disability may request a reasonable accommodation. This means:
- A landlord in North Carolina refuses to rent to a family with three children citing building safety concerns. This most likely violates which protected class?
- Which of the following is an example of a reasonable modification under the Fair Housing Act?
- Which federal agency is primarily responsible for investigating fair housing complaints?
- The Americans with Disabilities Act (ADA) primarily affects real estate by requiring:
- A broker advertises a home using language that implies a preference for a particular religion. This violates:
- The Jones v. Mayer (1968) Supreme Court decision held that:
- The 1968 Fair Housing Act was passed as part of the:
- Under the Fair Housing Act, an exemption may apply to a private individual selling their own single-family home WITHOUT an agent IF they:
- The 'Mrs. Murphy' exemption under the Fair Housing Act applies to:
- A 55-and-older community in North Carolina is exempt from familial status provisions IF:
- Testers are used in fair housing enforcement to:
- Which is NOT a protected class under the federal Fair Housing Act?
- In North Carolina, discriminatory acts under the Fair Housing Act can be reported to all of the following EXCEPT:
- Which of the following advertising statements violates the Fair Housing Act?
- A broker who shows minority buyers homes only in minority-concentrated neighborhoods is engaging in:
- Under the Fair Housing Act, a seller may NOT instruct their listing agent to:
- Which of the following is an example of illegal disparate impact discrimination in housing?
- Sexual harassment in housing under the Fair Housing Act falls under which protected class?
- The NC Fair Housing Act (North Carolina law) prohibits housing discrimination based on the same protected classes as the federal act plus:
- A landlord charges higher security deposits to tenants with disabilities. This is:
- The federal Fair Housing Act prohibits discrimination in residential real estate transactions based on all of the following EXCEPT:
- Several NC municipalities have added which protected class beyond the federal Fair Housing Act's seven classes?
- 'Steering' in fair housing refers to a broker's practice of:
- 'Blockbusting' is an illegal practice in which brokers:
- Which of the following properties is EXEMPT from the federal Fair Housing Act?
- A complaint alleging a violation of the federal Fair Housing Act must be filed with HUD within:
- The Americans with Disabilities Act (ADA) primarily applies to which type of properties?
- Under the Fair Housing Act, a landlord must allow a disabled tenant to make reasonable modifications to the unit. Who typically pays for these modifications?
- A landlord has a policy that no children under 12 may live in their apartment complex. This policy most likely violates which protected class under the Fair Housing Act?
- Redlining in real estate refers to:
- A landlord in NC who has a 'no pets' policy decides to refuse to rent to a tenant with a service animal trained to assist with a disability. This action most likely violates:
- Under the Fair Housing Act, 'familial status' protects:
- An advertising statement such as 'perfect for young professionals — no children' in a NC rental listing most likely violates:
- A NC property manager who says 'We don't rent to people on Section 8' in a jurisdiction that has source-of-income protection would be violating:
- A NC landlord who requires a higher security deposit from a tenant with a disability because they worry about property damage has likely violated:
- Under the Fair Housing Act, a lender who charges higher fees or interest rates to minority borrowers with similar qualifications compared to white borrowers is engaged in:
- Which NC property is exempt from the 'Mrs. Murphy' exemption under the federal Fair Housing Act?
- Under the Fair Housing Act, a real estate agent who shows a Black buyer only homes in predominantly Black neighborhoods and does not show homes in white neighborhoods is engaged in:
- Under the Fair Housing Act, a landlord may reject a rental applicant based on:
- A NC housing provider who creates a policy that appears neutral but has a disproportionate negative impact on a protected class may be liable under:
- In NC, the NC Human Relations Commission handles fair housing complaints. How long do complainants have to file with the NC HRC?
- Which federal law specifically prohibits discrimination in credit transactions (including mortgages) based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance?
- A NC senior housing community that qualifies as 'housing for older persons' under the Housing for Older Persons Act (HOPA) may restrict occupancy to persons aged:
- A NC mortgage lender who uses different underwriting criteria for borrowers in predominantly minority zip codes has likely engaged in:
- A NC homeowners association that enforces rules differently based on residents' national origin would be violating:
- Under the Fair Housing Act, an advertisement that states 'quiet neighborhood, ideal for mature adults' may be considered:
- Under the ADA and Fair Housing Act, a residential building with four or more units built for first occupancy after March 13, 1991 must meet which design requirements?
- A NC property manager who has a policy of requiring income verification only for applicants with foreign-sounding names has likely engaged in:
- A NC broker who refuses to show a property 'because the area is not right' for a buyer of a particular religion is engaging in:
- Under NC and federal law, a landlord may legally ask a prospective tenant to provide proof of:
- A NC real estate agent who uses social media to target listings only to certain racial or ethnic groups using Facebook's audience targeting tools has likely violated:
- A NC municipality that enacts a zoning ordinance prohibiting group homes for people with disabilities in residential zones has likely violated:
- A NC property management company that uses a computer algorithm to screen rental applicants must ensure the algorithm:
- Under NC and federal law, a landlord must provide a 'reasonable accommodation' for a tenant with a disability. 'Reasonable accommodation' means:
- A NC senior apartment complex that qualifies under HOPA's 55+ exemption must maintain records proving that:
- The NC Real Estate Commission's 'Implicit Bias' training component emphasizes that brokers should be aware of:
- A NC landlord who refuses to rent to a family because they have three children (and a policy limits occupancy to 'two persons per bedroom') should be aware that:
- A NC lender who offers a minority borrower a subprime loan with higher fees when the borrower qualifies for a prime loan has engaged in:
- Under NC and federal fair housing law, a person who experiences housing discrimination has how long to file a complaint with HUD?
- A NC real estate agent who shows white buyers homes in certain neighborhoods and Black buyers homes in other neighborhoods is violating the FHA through which specific practice?
- Under NC law, a real estate broker who assists a seller in discriminatory practices (such as only showing to certain buyers) is:
- A NC property owner who asks their broker 'How many minorities live in this neighborhood?' in order to decide whether to sell is asking the broker to engage in:
- Under the Fair Housing Act, a 'testers' program involves:
- A NC broker who gives a different explanation of a neighborhood's school quality to a buyer based on the buyer's race is engaging in:
- A NC apartment complex that requires all applicants to speak English as a primary language would likely violate the FHA because:
- The federal Fair Housing Act does NOT explicitly cover which of the following as a protected class?
- A NC real estate brokerage that maintains separate MLS search profiles for buyers of different racial backgrounds to show them different listings is engaging in:
- A NC real estate agent who tells a Black buyer that a neighborhood is 'changing' or 'transitioning' (implying racial composition changes) is engaging in which illegal practice?
- Under the Fair Housing Act, an advertisement that uses images showing only people of one race for a property in a racially diverse area may:
- A NC landlord who gives preferential treatment to applicants referred by existing tenants creates a potential fair housing issue if:
- NC's statute of limitations for a private lawsuit under the federal Fair Housing Act is:
- A NC landlord who asks 'Do you have kids?' during a rental application interview is:
- A NC landlord who charges a Hispanic applicant a higher security deposit than a white applicant with the same qualifications has engaged in:
- A NC condo association that enforces rules more strictly against Black residents than white residents with the same violations has engaged in:
- A NC property management company that has a policy of not renting to people with criminal records must be careful because:
- Under the NC Fair Housing Act, an act of retaliation against a person for filing a fair housing complaint is:
- A NC landlord who refuses to modify their 'no modification' policy to allow a blind tenant to install grab bars in their bathroom has likely violated:
- A NC broker must maintain files of transactions for how long to comply with potential fair housing investigation requirements?
- A NC landlord who advertises 'English-speaking tenants preferred' is likely violating the FHA's prohibition on discrimination based on:
- Under the FHA, which of the following is a protected class in senior housing communities (55+) that is NOT waived by HOPA exemption?
- A NC landlord who consistently approves less-qualified white applicants over more-qualified minority applicants is engaging in:
- A NC real estate professional who encounters discrimination in housing should be aware that the penalty for a willful first violation of the Fair Housing Act may include:
- A NC housing provider who treats a same-sex couple differently than an opposite-sex couple in the rental application process may be violating:
- Under the Federal Fair Housing Act, which of the following is NOT a protected class?
- A property manager in Charlotte refuses to rent to families with children, claiming it is a safety concern due to an unfenced pool. This is most likely:
- A NC landlord posts an ad stating 'Ideal for young professionals.' This advertisement may violate the FHA because it implies a preference against:
- A HUD complaint alleging fair housing violations must be filed within how many days of the alleged discriminatory act?
- The Fair Housing Act's exemption for 'Mrs. Murphy' applies to:
- Blockbusting (panic selling) in NC neighborhoods violates the Fair Housing Act because it:
- The FHA requires that new multifamily housing with 4 or more units built after March 13, 1991 include 'accessible design features' for:
- Steering in real estate refers to:
- A real estate broker refuses to show a Jewish buyer properties in a predominantly Christian neighborhood. This violates the FHA based on which protected class?
- A landlord in Greensboro tells a prospective tenant with a wheelchair that the building 'isn't really suitable' for them and suggests they look elsewhere. This likely violates which protected class?
- Which NC state law mirrors and expands upon the Federal Fair Housing Act to prohibit housing discrimination?
- Under the FHA, which type of housing is exempt from the familial status (children) protections?
- Under the FHA's disability protections, a housing provider must offer 'reasonable accommodations' to tenants with disabilities. This means:
- A property manager in NC receives a rental application from a Hispanic family and an identical application from a white family. Approving the white family while denying the Hispanic family, based solely on national origin, would be an example of:
- A lender in NC refuses to make mortgage loans in predominantly minority neighborhoods regardless of individual applicants' creditworthiness. This practice is called:
- An insurance company in NC charges higher premiums for homeowner's insurance on properties in predominantly minority neighborhoods compared to identical properties elsewhere. This may violate:
- Under NC and federal fair housing law, a seller of their primary residence using a licensed broker for marketing CANNOT lawfully:
- The Americans with Disabilities Act (ADA) applies to real estate primarily in the context of:
- Under the FHA, 'discriminatory advertising' includes any advertisement that:
- A NC broker who intentionally violated the Fair Housing Act may face which of the following consequences?
- NC's Fair Housing Act (G.S. 41A) is administered by which agency?
Escrow & Title
111 questions- In North Carolina, who typically handles real estate closings?
- A North Carolina attorney issues a title opinion (certificate of title) to:
- In North Carolina, trust account funds (earnest money) must be deposited within:
- Which of the following would appear as a buyer's debit on a closing disclosure?
- In North Carolina, real estate closings are typically conducted by:
- An owner's title insurance policy in North Carolina protects:
- A lender's title insurance policy (mortgagee's policy) in North Carolina:
- The chain of title in North Carolina refers to:
- A 'cloud on title' in North Carolina is best described as:
- In North Carolina, a deed must be recorded in the:
- A general warranty deed in North Carolina provides the buyer with:
- A special warranty deed in North Carolina differs from a general warranty deed in that:
- Which type of deed conveys whatever interest the grantor has, with no warranties?
- Constructive notice in North Carolina real estate means:
- Which of the following is typically a seller's closing cost in a North Carolina transaction?
- The North Carolina excise tax (revenue stamps) on a deed is charged at:
- On a $350,000 sale, how much is the North Carolina excise tax?
- In North Carolina, the excise tax on a deed is typically paid by:
- ALTA (American Land Title Association) title insurance policies are:
- An abstract of title in North Carolina is:
- In North Carolina, the deed of trust is used instead of a mortgage. The deed of trust involves how many parties?
- In a North Carolina deed of trust foreclosure, the trustee's sale is typically a:
- A lis pendens recorded against a North Carolina property provides:
- Recording a deed in North Carolina's Register of Deeds provides:
- A deed is considered delivered and accepted in North Carolina when:
- A 'satisfaction of mortgage' in North Carolina is recorded when:
- Priority of liens in North Carolina is generally determined by:
- In North Carolina, a deed of trust must be signed by:
- The trustee in a North Carolina deed of trust holds:
- North Carolina is an 'attorney closing state,' which means:
- In North Carolina, the 'excise tax' (revenue stamps) on deed transfers is paid at what rate and by whom?
- An owner's title insurance policy in NC protects:
- A lender's title insurance policy (loan policy) in NC protects:
- At closing in NC, prorations for property taxes are typically based on:
- A 'cloud on title' in NC refers to:
- In NC, a mechanic's lien must be filed within how many days of the contractor's last furnishing of labor or materials?
- Which of the following best describes a 'lis pendens' recorded against a NC property?
- Earnest money held in a broker's trust account in NC belongs to:
- In NC, a 'Closing Disclosure' must be delivered to the buyer at least how many business days before consummation of the loan?
- In NC, the 'chain of title' refers to:
- A 'title search' in NC involves:
- An 'abstract of title' in NC is best described as:
- A 'FIRPTA withholding' at a NC closing applies when:
- In NC, the seller's attorney typically handles which task at closing?
- A 'buyer's premium' paid at a NC real estate auction represents:
- The 'settlement statement' (Closing Disclosure) at a NC closing shows:
- In a NC transaction, the 'earnest money deposit' vs. the 'due diligence fee' — which is refundable if the buyer terminates during due diligence?
- In NC, recording a deed in the Register of Deeds provides:
- A 'marketable title' in NC is one that:
- A 'deed in lieu of foreclosure' in NC allows a distressed borrower to:
- In NC, a 'short sale' occurs when:
- An 'easement by necessity' in NC is typically created when:
- A 'commitment for title insurance' in NC is issued by the title company to:
- A NC broker who disburses trust funds without authorization from the parties involved has committed:
- At a NC residential closing, who typically prepares the deed?
- In NC, 'gap coverage' in a title insurance policy protects against:
- Under NC law, a deed of trust in a non-judicial (power of sale) foreclosure must be processed through:
- In NC, the priority of liens on a property is generally determined by:
- In NC, a 'notice of satisfaction' (or 'cancellation of deed of trust') is recorded when:
- A 'title binder' in NC real estate provides:
- Under NC law, when a real estate transaction closes and the seller has a mortgage, the closing attorney must:
- In NC, a 'deed of trust' has three parties while a 'mortgage' has two. In a deed of trust, the trustee's role is to:
- In a NC foreclosure, the 10-day upset bid period allows any person to:
- A 'simultaneous closing' in NC occurs when:
- A 'tax certificate' issued in NC at a tax sale represents:
- In NC, 'title insurance' differs from other types of insurance in that it:
- Under NC law, the priority of a purchase money deed of trust (given at time of sale) over other liens is established by:
- In NC, a 'power of attorney' used in real estate transactions must be:
- In NC, a buyer who discovers after closing that the seller did not have clear title to the property that was conveyed may seek recovery under:
- A 'quiet title action' in NC is a lawsuit that seeks to:
- In a NC residential transaction, who typically pays the owner's title insurance premium?
- A NC lender who receives a payoff of the mortgage on a property must record a satisfaction within how many days?
- In NC, a 'discharge of mortgage' or 'cancellation of deed of trust' is important at closing because it:
- In a NC purchase transaction, the buyer's lender typically requires 'lender's title insurance' to be paid by:
- In NC, a 'subordination clause' in a deed of trust allows:
- A NC closing at which the buyer does not have sufficient funds to close due to a last-minute change in loan terms would be:
- In NC, 'proration' of homeowners association dues at closing is handled by:
- In NC, 'survey exceptions' in a title insurance policy mean:
- In NC, which type of title insurance coverage provides the broadest protection for the buyer?
- A NC 'ALTA survey' (comprehensive land title survey) differs from a standard boundary survey in that it also identifies:
- When NC property taxes are overdue, the county may begin the 'tax foreclosure' process. Before the property can be sold at tax sale, the owner typically has the right to:
- In NC, when both buyer and seller refuse to release earnest money held in trust following a failed transaction, the broker's appropriate action is:
- Under the NC Residential Property Disclosure Act, a buyer who received the disclosure but waived their right to rescind by signing a waiver:
- When a NC title insurance company pays a claim on an owner's policy, the insurer receives the right to:
- In NC, which standard exception in a title insurance policy is typically NOT covered without a survey?
- Under NC's recording act, a bona fide purchaser for value (BFP) who takes without notice of a prior unrecorded claim and records first will:
- In NC, a 'release deed' (deed of release or satisfaction of mortgage) removes which encumbrance from a property's title?
- A 'construction escrow' in a NC new construction transaction holds:
- In NC, the difference between 'buyer-funded' and 'seller-funded' at closing refers to:
- In NC, a 'conveyance in trust' (placing property in a trust) requires a deed to be prepared and:
- In NC, 'constructive fraud' in a real estate transaction may occur when:
- In NC, 'title exceptions' that appear in a title commitment refer to:
- In North Carolina, the closing of a real estate transaction must be supervised by:
- A title search in NC reveals a judgment lien against the seller. Which of the following is TRUE?
- A lender's title insurance policy in NC protects:
- In NC, after a foreclosure under a deed of trust, the former owner has a 10-day period during which:
- A mechanic's lien in NC can be filed by:
- In NC, a deed of trust involves how many parties?
- In NC, when a property is sold via a deed of trust foreclosure, excess proceeds after paying the debt go to:
- In NC, 'marketable title' means:
- Which of the following is a 'voluntary' lien on real property?
- When a NC seller pays off their mortgage at closing, the deed of trust is released by recording a:
- In NC, a 'lis pendens' filed against a property means:
- In NC, which party is responsible for conducting the title search prior to closing?
- An 'abstract of title' in NC is:
- In NC, which of the following would typically appear on the HUD-1 or Closing Disclosure as a credit to the buyer?
- A 'deed in lieu of foreclosure' in NC means the borrower:
- In NC's race-notice recording statute, a later purchaser is protected over an earlier purchaser IF the later purchaser:
- In NC, an 'easement by necessity' arises when:
- At the NC closing table, the closing attorney is responsible for all EXCEPT:
- Under NC's power of sale foreclosure process (deed of trust), what must the trustee do BEFORE conducting the foreclosure sale?
Environmental
108 questions- North Carolina requires disclosure of lead-based paint hazards in residential properties built before:
- Radon is a naturally occurring radioactive gas that typically enters buildings through:
- EPA action level for radon that recommends mitigation is:
- Asbestos is considered most hazardous when it is in a:
- A Phase I Environmental Site Assessment (ESA) in North Carolina:
- Underground Storage Tanks (USTs) are a concern in commercial real estate transactions because:
- CERCLA (the Superfund law) imposes cleanup liability on:
- Mold in a home is most commonly caused by:
- Which federal law requires sellers of homes built before 1978 to disclose known lead-based paint hazards?
- Wetlands in North Carolina are regulated primarily by:
- A 'brownfield' site in North Carolina is a property where:
- PCBs (polychlorinated biphenyls) in real estate are associated with:
- Carbon monoxide (CO) in a residential property is most commonly produced by:
- An 'innocent purchaser' defense under CERCLA allows a property buyer to avoid Superfund liability IF they:
- The NC Brownfields Program provides developers with:
- Formaldehyde in homes is commonly found in:
- The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is also known as:
- A property with a fuel oil storage tank that has leaked into the soil would most likely require:
- In North Carolina, a seller must disclose on the RPOADS if the property is located in a:
- Which organization sets maximum contaminant levels (MCLs) for safe drinking water in North Carolina?
- Which NC state agency is primarily responsible for environmental regulation and permitting in North Carolina?
- The Coastal Area Management Act (CAMA) in NC regulates development in:
- Under federal law, the seller of a pre-1978 home must provide buyers with:
- Radon is a naturally occurring radioactive gas. The EPA action level for radon mitigation is:
- Asbestos-containing materials (ACM) in a home built before 1978 are most dangerous when they are:
- A Phase I Environmental Site Assessment (ESA) for a NC commercial property is designed to:
- Underground storage tanks (USTs) containing petroleum products are regulated in NC primarily to prevent:
- A 'wetland' on a North Carolina property is significant for real estate purposes primarily because:
- Which of the following is considered a 'Superfund' site regulated under CERCLA?
- Mold growth in a North Carolina home is most directly caused by:
- A 'brownfield' in NC real estate refers to:
- The NC 404/401 permitting process (referencing Section 404 of the Clean Water Act and NC's 401 Water Quality Certification) is required for activities that:
- Polychlorinated biphenyls (PCBs) in older buildings are commonly found in:
- The NC Brownfields Program provides incentives for redevelopment of contaminated properties by:
- A NC property owner who discovers oil contamination from an old underground storage tank on their property should first:
- The NC Sedimentation Pollution Control Act requires land-disturbing activities affecting how many acres to obtain an erosion control permit?
- In NC coastal areas, a CAMA Major Permit is required for development activities in Areas of Environmental Concern (AECs) that exceed:
- A NC broker listing a property that may have had a buried oil tank should recommend the seller:
- North Carolina's Neuse River Basin Rules require riparian buffers along streams primarily to:
- A NC seller is required to disclose on the Residential Property Disclosure Statement whether the property is subject to:
- The NC Flood Damage Prevention Ordinances (adopted in NFIP-participating communities) require that new construction in a Special Flood Hazard Area be built:
- Formaldehyde off-gassing from building materials in a NC home is primarily a concern in:
- The NC Division of Coastal Management administers CAMA permits in coordination with which federal agency for activities in coastal waters?
- A NC property near an old dry cleaning operation may be contaminated with which hazardous substance?
- Under CERCLA, the 'innocent landowner' defense allows a property owner to avoid Superfund liability if they can show:
- A NC seller who knows about a previous methamphetamine lab operation on the property must:
- The NC Division of Water Resources manages which environmental program critical to property development along NC waterways?
- NC's Clean Smokestacks Act targeted which form of environmental pollution from power plants?
- Carbon monoxide (CO) in a NC home is most commonly produced by:
- Volatile organic compounds (VOCs) in a NC home are often found in:
- A septic system on a NC rural property that fails its inspection could result in:
- A NC property located within a designated 'Special Flood Hazard Area' (SFHA) requires the buyer to:
- Which NC state law regulates the management and disposal of solid waste and directly affects real estate development near former landfill sites?
- The NC Hazardous Waste Management Act regulates the generation, transportation, treatment, and disposal of hazardous wastes. Properties where hazardous waste was improperly managed may require:
- The NC Environmental Policy Act (SEPA) requires state agencies to consider which factor in major development approvals?
- Electromagnetic fields (EMFs) from power lines near a NC property are a concern to some buyers. Under NC disclosure law, a seller:
- The NC Department of Agriculture and Consumer Services (NCDA&CS) is involved in regulating which environmental hazard related to real estate?
- A real estate broker listing a property with a private well in NC should recommend the seller:
- A NC property near the Research Triangle Park area may be affected by which type of environmental hazard related to high-tech industry?
- NC's 'Brownfields Redevelopment Program' incentivizes redevelopment of contaminated properties by offering:
- A former dry cleaning site in downtown Raleigh with soil contamination from PCE (tetrachloroethylene) is being redeveloped. The developer must obtain a Brownfields Agreement from:
- Coal ash from power plants in NC is regulated as a potential environmental hazard because it may contain:
- In NC, which of the following is a potential environmental issue specific to the Piedmont region's geology?
- The term 'sick building syndrome' (SBS) refers to conditions in a NC building where:
- Homeowners in mountainous NC counties such as Buncombe (Asheville) and surrounding areas should be aware of elevated risk from:
- Under NC's Solid Waste Management Act, which type of waste from property renovations is regulated under special rules?
- A NC coastal property in the Outer Banks that is identified as being in a 'V-Zone' on a FEMA flood map indicates:
- NC's 'water quality buffer' requirements along streams affect real estate development because:
- In NC, which environmental concern is most specific to areas around tobacco farms in the eastern part of the state?
- The discovery of a Native American burial site on a NC development property may trigger requirements under:
- A NC property owner who discovers pipes in their pre-1986 home may contain lead solder should be aware that:
- NC's 'Hazardous Substance Brownfields Grant' program provides funding for:
- Heavy metals (arsenic, cadmium, lead) found in NC soil near old manufacturing sites are regulated because they:
- A NC property near a former textile mill may have soil contamination from:
- A NC property owner applying for a building permit near wetlands may be required to obtain a NC 401 Water Quality Certification, which is issued by:
- A seller in NC who is selling a home with an oil-fired heating system should check whether there is:
- A NC seller who has a private well system should provide the buyer with a well water test report for which contaminants at minimum?
- A NC seller disclosing a home near a cell tower should be aware that while EMF research is ongoing, the proximity of the tower is:
- NC's 'Voluntary Cleanup Program' administered by NCDEQ is designed to:
- NC's 'Coal Ash Management Act' of 2014 was enacted in response to:
- A real estate agent listing a property near a hog farm in eastern NC must be aware of what potential disclosure issue?
- In NC coastal areas, 'maritime forest' protection regulations are most relevant in which location?
- NC's Hatteras Island and Cape Hatteras National Seashore area present which unique environmental challenge for real estate?
- A NC property near a railroad corridor may have soil contamination from:
- A NC property that previously housed a gasoline station may require what environmental assessment before redevelopment?
- The NC Recreational Water Quality Program monitors which potential environmental hazard in rivers and lakes used for swimming?
- A NC coastal property in an SFHA (Special Flood Hazard Area) that was substantially damaged (damage exceeding 50% of market value) must be rebuilt:
- The NC Brownfields Program administered by NCDEQ helps redevelop contaminated sites by:
- The Neuse River Basin Rules in NC are designed primarily to reduce which type of water pollutant?
- Under CERCLA (Superfund), which party bears the LEAST liability for cleanup costs if contamination is discovered on a property?
- Which type of insulation, commonly found in homes built before 1978 in NC cities like Greensboro and Winston-Salem, may contain asbestos?
- Lead-based paint disclosure requirements under federal law apply to the sale of residential housing built before:
- Which disclosure is required in North Carolina for properties with a private well or septic system?
- Jordan Lake Rules in NC regulate which type of land area?
- A homebuyer in NC is concerned about electromagnetic fields (EMF) from a nearby power line. What is the broker's obligation?
- Which of the following best describes a 'wetland' and why it is important in NC real estate transactions?
- A NC buyer discovers the property has an underground storage tank (UST) that was previously used for heating oil. The buyer should:
- Radon gas in NC homes enters primarily through:
- Phase I Environmental Site Assessments (ESAs) involve:
- Polychlorinated biphenyls (PCBs) were widely used in which building component that may be found in pre-1979 NC commercial buildings?
- In NC, the 'Clean Smokestacks Act' (2002) primarily regulates:
- Which NC coastal development requirement is designed to protect oceanfront areas from overdevelopment?
- Which organization sets maximum contaminant levels (MCLs) for public drinking water supplies in NC?
- Which federal law requires sellers and landlords to disclose known lead-based paint hazards before a sale or lease of pre-1978 housing in NC?
- A NC homeowner discovers black mold in their home. Regarding disclosure and remediation, which statement is MOST accurate?
- In NC, a seller of residential property must disclose on the NC Residential Property Disclosure Statement whether the property has:
- Which environmental issue is particularly relevant to properties near former dry-cleaning operations in NC urban areas?
- In NC, the State Historic Preservation Office (SHPO) plays a role in real estate when:
Land Use & Zoning
104 questions- Zoning in North Carolina is primarily a power of:
- A nonconforming use in a zoned area means:
- A variance in zoning is:
- A special use permit (conditional use permit) in North Carolina is required when:
- Eminent domain allows the government to:
- A buffer zone in land use planning is typically used to:
- In North Carolina, subdivision plats must be approved and recorded before lots can be:
- Spot zoning in North Carolina is generally considered:
- Inverse condemnation occurs when:
- A deed of dedication in North Carolina is most commonly used to:
- A 'planned unit development' (PUD) in North Carolina typically features:
- Inclusionary zoning in North Carolina requires developers to:
- A 'use by right' in a North Carolina zoning ordinance means:
- The purpose of building codes in North Carolina is to:
- Impact fees charged by North Carolina municipalities for new development are intended to:
- In North Carolina, a certificate of occupancy (CO) is issued when:
- Downzoning in North Carolina means changing a property's zoning to:
- Upzoning in North Carolina means changing a property's zoning to allow:
- Takings in the context of North Carolina land use refers to:
- In North Carolina, the entity that hears appeals of local zoning decisions is typically the:
- A 'variance' in NC zoning law is permission granted by the local board of zoning adjustment to:
- A 'special use permit' (conditional use permit) in NC zoning differs from a variance in that it:
- A 'nonconforming use' in NC zoning refers to:
- Eminent domain is the government power to:
- In NC, the Outer Banks communities are subject to unique coastal building regulations primarily due to:
- A 'buffer zone' in land use planning typically refers to:
- The 'police power' that allows NC municipalities to adopt zoning ordinances is based on the government's authority to:
- Under NC law, a property owner who disagrees with a local zoning board decision may appeal to:
- Which of the following is an example of 'spot zoning'?
- A 'setback requirement' in NC zoning ordinances specifies:
- The Research Triangle Park (RTP) area in NC, located between Raleigh, Durham, and Chapel Hill, is primarily zoned for:
- A 'planned unit development' (PUD) in NC allows:
- NC's Mountain Ridge Protection Act limits development on:
- Under NC's Transfer of Development Rights (TDR) programs, landowners in a 'sending area' may:
- An 'overlay district' in NC zoning is best described as:
- In NC, the Outer Banks barrier islands are subject to CAMA regulations that restrict development on which features?
- In NC, a 'comprehensive plan' (land use plan) is:
- Under NC law, an 'annexation' by a municipality typically results in:
- The Charlotte, NC area's rapid growth has led to the adoption of 'transit-oriented development' (TOD) zoning, which encourages:
- An 'agricultural conservation easement' in NC allows a landowner to:
- A NC 'historic district' designation means:
- NC's State Environmental Policy Act (SEPA) requires environmental review for:
- Under the NC General Assembly's legislation, local governments may regulate short-term rentals (Airbnb, VRBO) by:
- A 'floor area ratio' (FAR) in NC zoning limits:
- An 'agricultural preservation district' in NC is designed to:
- An 'Adequate Public Facilities Ordinance' (APFO) in NC requires that:
- NC's Jordan Lake Rules require nutrient reduction measures for development within the Jordan Lake watershed, which is part of which river basin?
- A 'conditional zoning' in NC allows a developer to obtain rezoning by:
- Under NC law, a 'vested rights' claim for a development project means the developer:
- A 'form-based code' in NC zoning focuses on:
- In NC, 'spot annexation' by a municipality is controversial because:
- A 'downzoning' in NC refers to:
- A NC property within the 'extraterritorial jurisdiction' (ETJ) of a municipality is subject to:
- Under NC law, what is required before a rezoning decision is made by a local governing board?
- Under NC statutes, which government body has primary authority to adopt and amend local zoning ordinances?
- NC's 'Unified Development Ordinance' (UDO) combines:
- A 'mixed-use zoning' district in NC allows:
- In NC, a municipality's 'adequate public facilities' requirement for new development is also known as:
- An 'impact fee' in NC is charged to developers to:
- A 'traffic impact analysis' (TIA) is required by many NC local governments before approving:
- In NC's growing coastal communities like Wilmington, which zoning consideration is most unique due to the hurricane risk?
- A NC municipality's 'Unified Development Ordinance' (UDO) typically includes standards for all of the following EXCEPT:
- A NC 'large-lot zoning' ordinance that requires minimum 5-acre lots in a particular area has the effect of:
- Under NC's Local Government Land Use Control Act, counties in NC have the authority to:
- A 'transfer of development rights' (TDR) program in NC benefits conservation by:
- NC's rapid growth in the Charlotte and Raleigh-Durham areas has led to debates about 'urban sprawl.' Sprawl is characterized by:
- The term 'gentrification' in NC urban areas refers to:
- NC's 'Smart Growth' planning principles encourage which type of development pattern?
- A NC municipality's 'thoroughfare plan' is designed to:
- In NC, a 'development agreement' between a developer and a local government provides:
- Under NC law, a 'subdivision' of land for development purposes is regulated by which local control?
- Under NC's 'inclusionary zoning' policies (where adopted), developers may be required to:
- NC's 'High Performance Building Standards' for state-funded construction are designed to:
- A NC 'land use plan' (comprehensive plan) update is required when:
- A NC municipality that increases the required minimum lot size from 1/4 acre to 2 acres across a large area may face a legal challenge based on:
- A NC 'Corridor Protection Overlay' zone along a major transportation route typically:
- A NC 'natural hazard area' designation (such as a landslide-prone area) affects real estate development by:
- NC's statute allowing cities to annex land contiguously (touching the city boundary) is designed to:
- A NC municipality that adopts 'form-based codes' for its downtown area is likely trying to:
- The NC Growth Management Act concept of 'urban service areas' is used to:
- In NC, 'agricultural zoning' primarily serves to:
- Under NC law, a property owner's legal challenge to a zoning ordinance as a 'regulatory taking' may succeed if:
- A NC 'transfer station' for solid waste located near a residential neighborhood could affect real estate values primarily through:
- A 'growth boundary' or 'urban growth area' in NC is designed to accomplish which planning goal?
- A parcel of land used as a gas station before residential zoning was adopted may continue operating as a gas station under which doctrine?
- In NC, which entity typically has primary authority to adopt and administer zoning ordinances?
- A developer in NC wants to build a planned unit development (PUD) that mixes residential and commercial uses on one tract. This would typically require:
- CAMA (Coastal Area Management Act) in NC applies to which areas?
- A 'buffer zone' in NC land use planning typically refers to:
- An 'overlay district' in NC zoning adds:
- A 'Special Use Permit' (or Conditional Use Permit) in NC allows a use that is:
- A property owner in NC who believes the local board of adjustment made an error in denying a variance may appeal to:
- NC's Mountain Ridge Protection Act restricts high-rise construction on:
- An 'accessory dwelling unit' (ADU) such as a detached garage apartment in NC would typically require:
- In NC, a 'subdivision' is generally defined as the division of a tract of land into:
- In NC, the 'extraterritorial jurisdiction' (ETJ) of a municipality allows the city to:
- NC's 'Adequate Public Facilities' ordinances (APFOs) are designed to:
- A 'transfer of development rights' (TDR) program in NC allows:
- A 'mixed-use development' in an NC urban area like downtown Raleigh typically includes:
- In NC, 'planned development' zoning (PD or PUD) typically allows:
- A NC county's 'comprehensive land use plan' (or 'land use plan') serves primarily as:
- In NC, which entity has the authority to grant a 'variance' from the requirements of a zoning ordinance?
- Under NC's Unified Development Ordinance (UDO) framework, what is the advantage of combining zoning, subdivision, and other land use regulations into one ordinance?
- In NC, 'downzoning' refers to rezoning land to a:
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