LTP State Exam Questions with All Correct Answers

LTP State Exam Questions with All Correct Answers XV, XVI - Landlord Tenant & Property Management A tenant vacated a property, with property notice and in reasonable condition, on September 30th. The tenant had a security deposit of $1,200. Which of the following describes a Property Manager's obligation regarding this security deposit? - AnswerProperty manager must account for the funds, to the tenant, within 30 days With regard to tenant security deposits, all of the following statements are correct, EXCEPT: - Answer-A property management company is required to have all security deposit funds deposited in a trust or escrow account or be boned A licensed property management company is not allowed to be bonded and therefore would be required to have a trust or escrow account. The trust / escrow account must be in an insured bank that is approved to do business in North Carolina and agrees to make records available to the NC Real Estate Commission upon request. XII - Closing a Sales Transaction An attorney's title examination would, most likely, discover which of the following? - Answer-A 9-year old IRS lien against the property that has yet to be settled VII - Brokerage Relationships - Law and Practice In North Carolina, a broker does not have to disclose information which could stigmatize a property voluntarily. Which of the following is an example of this? - Answer-Violent death A listing agent is unaware of a septic tank issue with a vacant listing. Neither she nor the seller made any representations regarding the septic system. Six weeks after a buyer purchased the property, the buyer discovered a problem that required a major repair. When the septic tank company arrive to repair the issue, the technician informed the buyer that he had worked on this tank several times and the previous owner had been aware that it would soon fail. Given these circumstances, which of the following is true? - Answer-The seller could be liable for not disclosing a latent defect of which he was aware Which of the following would be a duty of a licensee? - Answer-Measuring the square footage of a home for a seller when disclosed in the MLS Two agents with XYZ Realty are correctly practicing dual agency as designated agents. When is the latest that a seller should be informed of the identity of the agent designated for the buyer? - Answer-At initial contact with the buyer's designated agent First substantial contact (FSC) relates to agency disclosure between an agent and a prospective client. The last point FSC can arise with a seller is prior to beginning the listing presentation. The last point that FSC occurs with a buyer is the point that the agent is opening the door for the prospective buyer. Which of the following would a listing broker be obligated to disclose to a buyer's agent? - Answer-A recent highway expansion was approved to begin construction a half a mile from the house in the next 18 months A broker that is representing the seller in a transaction is commonly acting as: - Answera special agent A new home community is offering a new Subaru Outback when a broker sells 3 homes within 1 year. The broker: - Answer-must disclose the bonus to all buyers no later than the point that the buyer is considering an offer A broker is representing a client at the settlement meeting under the standard NCAR Exclusive Buyer Agency Agreement. Which of the following would the broker be responsible for at the settlement meeting? - Answer-Verifying the accuracy of the contract terms on the closing disclosure Which of the following events would trigger the requirement to provide and review the Working With Real Estate Agents brochure? - Answer-Discussing a seller's motivation for placing his home on the market Which of the following statement is TRUE about agency representation? - Answer-A provisional broker and his/her broker-in-charge may act as dual agents in a transaction A licensee is representing a seller through an Exclusive Right to Sell listing agreement. At the settlement meeting the seller refuses to pay commission on the listing firm. The licensee - Answer-must advice the seller that this is a breach of the listing contract V - Land Use Control A licensee has listed a property for sale with the seller authorizing dual and designated agency. A prospective buyer expresses an interest in making an offer. The buyer has disclosed a proposed use that would violate restrictive covenants. Is the licensee required to disclose the issue to the buyer? - Answer-Yes. A licensee is required to disclose material facts to all parties to the transaction XXI - Real Estate License Law and Commission Rules A provisional broker obtains a real estate license on May 15th of the current year. The provisional broker must: - Answer-pay the $45 license renewal fee Can a brokerage legally retain the interest earned on client funds that are deposited into the brokerage trust account? - Answer-Yes. When the client grants permission in the listing/buyer agency agreement The client can give the brokerage the authority to retain the interest earned on the trust account to cover the expenses of maintaining the account. The trust account is "other peoples money" and only a limited amount of brokerage money can be deposited into the account (typically $100). The NCAR Exclusive Right to Sell Listing Agreement addresses the ability of the firm to retain the interest.