NC Real Estate Exam Practice with Complete Solutions

NC Real Estate Exam Practice with Complete Solutions Real Property the land and everything that is permanently attached to the land or appurtenant (goes with) the land Personal Property/Personalty all property that is not real property; movable; personal property also referred to as chattels Test of Personal versus Real Property "IRMA" Intent Relationship Method of Attachment Adaptation Land Earth's surface extending downward to the center of earth and upward to infinity;includes all things permanently attached by nature Broker working with a prospective buyer as a listing agent owes which to the following to the prospective buyer? A. Honesty, fairness, and confidentiality B. Honesty, Fairness, disclosure of material facts C. Skill, care, diligence D. Disclosure of material facts, loyalty, accountability B. Honesty, Fairness, disclosure of material facts Which is the following is true about designated agency in North Carolina? A. A firm with a BIC and one provisional broker is not allowed to practice designated agency B. A BIC can assign an agent in another firm to act as a designated agent for one of their clients C. Designated is only allowed in large firms with multiple offices to avoid conflict of interest D. Designated agency is not allowed in North Carolina A. A firm with a BIC and one provisional broker is not allowed to practice designated agency A seller is required to pay a commission when involved in which of the following agreements regardless of who was procuring cause of the sale? A. Open Listing B. Net Listing C. Exclusive Right to Sell D. Exclusive Agency C. Exclusive Right to Sell Which is the following is true when listing a home? A. NCRE Licensing Law does not require agents to advertise or report square footage B. In NC square footage is considered a material fact and must be disclosed A. NCRE Licensing Law does not require agents to advertise or report square footage NC State law mirrors the federal laws and place restrictions on real estate brokers that solicit by all of the following except: A. Telephone B. Mail C. Electronic Fax D. E-Mail B. Mail To have an enforceable contract which of the following must be in place? A. Due Dilligence Fee B. Earnest Money C. Financing D. Parties with Contractural Capacity D. Parties with Contractural Capacity When trying to prequalify a buyer for a loan, how do you determine the loan to value ratio? A. Amount of mortgage is divided by the total value of the interest the borrower will pay during the term of the loan B. The amount of the mortgage is divided by the value of the property to be purchased C.Amount of mortgage is divided by 1,000 and then multiplied by the appropriate loan factor D. The borrowers monthly mortgage interest payment is divided by the borrowers total monthly principal and interest payment B. The amount of the mortgage is divided by the value of the property to be purchased Which of the following statements is/are true about VA loans? A. VA loans typically have a high loan to value ratio B. A purchaser must be an eligible veteran to assume a VA mortgage loan A. VA loans typically have a high loan to value ratio Which of the following increases a lender's yield? A. Prorations B. Mortgage Payments C. High LTVs D. Discount Points D. Discount Points Which of the following is prohibited by FHA and VA regulations? A. Low interest rates B. Prepayment penalties C. Seller and buyers can split point cost D. Second Mortgage B. Prepayment penalties When a veteran seller is relieved of their loan obligation under a VA mortgage by another veteran buyer who assumes and substitutes eligibility, it is considered or described as? A. Subordination B. Novation C. Accension D. Acceleration B. Novation Under the Federal Fair Housing Act which is prohibited? A. live in owner's refusal to rent a unit in a two family dwelling to any member of a certain religious group B. a broker's refusal to show a listing to a prospective purchaser because of their ethnic background C. a refusal to rent because the prospective renter is in the military D. Refusal to sell based on a political preference B. a broker's refusal to show a listing to a prospective purchaser because of their ethnic background A broker that sells a lot in a subdivision has violated the law if A. the subdivision lots have not been registered with the NCREC B. the subdivision preliminary plat has not been approved C. The purchaser was not given a public offering statement prior to making an offer D. the subdivision's street have not been paved B. the subdivision preliminary plat has not been approved Under the advertising regulations of Regulation Z, all of the following are true except A. Interest rates can't be mentioned alone, the APR must be stated B. General terms such as small downpayment or VA and FHA financing available may be used C. Compliance is enforced by the FTC D. Real Estate Brokers are regulated as "arrangers of