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NC Post-Licensing 302 - Unit Test Questions and Correct Answers 2024/2025 | Graded A+
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NC Post-Licensing 302 - Unit Test Questions and Correct Answers 2024/2025 | Graded A+
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NC Post-Licensing 302 - Unit TestQuestions
In a real estate transaction, which of the following is an example of consideration? - ANSThe
seller's promise to sell
Your automatic check writer wrote a check for $51.50, but your printer ran out of toner, so you
had to fill in the handwritten line. In a hurry, you accidentally wrote, "Fifty-one dollars and no/100
cents." Which amount takes priority? - ANSThe handwritten number
Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of these
actions changes the contract from executory to executed? - ANSDierks' lender funded the loan,
and closing took place
_______ is an example of circumstances that are beyond the buyers' control, meaning they
can't practically do what they've agreed to do, and the offer terminates. - ANSDestruction of
property
If a contract is for an illegal purpose, it's ______ - ANSVoid
Which of the following is NOT a valid reason for an offer termination in North Carolina? -
ANSImproper forms
Which offer would be the most appealing to a seller? - ANSIt depends on the seller's needs and
motivations
Kirk and his cousin Dewey decided to buy a vacation home. They entered into a contract with
the seller, Crystal. Before finalizing the sale, Dewey wanted out, but he doesn't want to let his
cousin down. So instead of pulling out altogether, Dewey convinced his son to replace him in
the purchase contract. Kirk and Crystal agreed to the substitution, and Dewey was released
from all his obligations under the contract. Dewey's son is now the contracting party. What's this
an example of? - ANSNovation
What type of language should be used to write contracts? - ANSPlain language
When does offer and acceptance occur? - ANSWhen both parties sign a contract with the full
understanding of the terms.
Sylvan, the seller, and Eric, the buyer, have signed an option agreement, which is an offer to
purchase a specific piece of real estate without the obligation to buy it. Until Eric exercises his
,option to buy, only Sylvan is bound by the option agreement; he may not sell the property to
anyone else during the option period. What type of contract is this? - ANSUnilateral
Three of these statements about interpreting contracts are true, and one is not. Which
statement is FALSE? - ANSA handwritten insertion can be canceled out by typing over it.
What is wrong with this statement: "Handwritten information on a contract is not legally binding.
All insertions must be typed."? - ANSInsertions do not have to be typed to be legally binding.
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping
the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a
commission. What type of agreement do Desmond and the Harpers have? - ANSBilateral
The Nettles have accepted the Briars' purchase offer, and both parties have signed the sales
contract. The funds, and the title, should transfer in a matter of days, but otherwise the all
elements and terms of the contract have been met. What type of contract do the Nettles and the
Briars have? - ANSExecutory
Ruthie is explaining the termination option to her buyer client. How would she explain that "time
is of the essence" is for the discharge under operation of law option? - ANS"This means that if
the seller doesn't decide by the deadline, the buyer is no longer held to the contract"
Why do you think that handwritten changes take priority over typed changes? - ANSIt's less
likely to be done inadvertently
Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected
that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and
they added their signatures. Which of the following statements is correct? - ANSBreanna
accepted the offer Kathy made
Rex needs to handle some money he acquired during an "unsavory" business deal. He agrees
to sign his boat over to his colleague, Ben, if Ben can launder the money and return it to Rex as
part of a legal business dealing. What kind of contract do Rex and Ben have? - ANSVoid
Which of the following is a legitimate reason to counter an offer? - ANSPrice
When a seller's agent receives a written offer from a prospective buyer, how must it be handled?
- ANSIt must be submitted promptly to the seller
Which of these sentences accurately lists rules for interpreting a contract? - ANSTyped text
takes precedence over pre-printed text, and spelled-out numbers (e.g. four) take precedence
over numerals (e.g. 5)
,Zelda received an offer from Matthew for her house on Monday. The offer is set to expire
Wednesday. After a sleepless night on Monday, Matthew told his broker to revoke the offer.
Zelda hadn't accepted the offer as of Tuesday night. What happens to Matthew's offer? -
ANSThe offer is terminated under contract revocation laws
Kent has received an offer for his house. What is the best solution if there are some offer terms
he's hesitant to accept? - ANSReject the offer but reply with a form that outlines acceptable
conditions
When does substantial performance of a contract occur? - ANSOne party has met most but not
all of the terms specified in the contract, and may be required to pay damages for the terms not
met
Thad received multiple offers on his property and is reviewing them with his agent Nora. All of
the offers have at least one contingency. Nora recommends that they reject the second offer,
because it has a contingency that's generally the most risky. Which contingency is that? -
ANSHome sale
Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-offer.
Kendra is now considering the counter. What role does Kendra currently have in this scenario? -
ANSOfferee
What does the parol evidence rule say about contracts? - ANSThe terms agreed to in a written
contract are the only terms relating to that contract
Barney and Zack signed a sales contract. Zack changed the down payment amount from
$2,000 to $5,000 using a software program. Barney then wrote $4,500 by hand on a printed
copy and sent it back to Zack. What is the amount of the down payment since both parties have
signed? - ANS$4,500
What is the definition of a legally competent party? - ANSSomeone who has the legal and
mental capacity to enter into a contract
Which party is bound by a bilateral contract? - ANSBoth the seller and the buyer
Which of the following is a good rule of thumb regarding multiple offers? - ANSMake sure to
consider all the terms of each offer
You've reviewed an offer with your seller client. The offer is pretty good, and the seller finds
most of the terms agreeable but wants to counter on the price. What's your next step after
working up a counter-offer? - ANSSubmit it promptly to the buyer's agent
All terms and conditions the client authorizes must be specified and included in an offer to sell or
buy. When is it acceptable to offer the property under other terms? - ANSnever
, The Graysons just closed on their new home. They move in tomorrow. What type of contract do
the Graysons have? - ANSExecuted
When Dashiell received the purchase offer for his bungalow, he was surprised to see a page
added to the contract requesting that an attorney review the contract. What is Dashiell looking
at? - ANSAddendum
North Carolina licensee Damon just received the executed copy of the offer his seller client,
Emily, signed yesterday. How long does he have to deliver a copy of this contract to Emily? -
ANSThree days
As part of the sales contract, Garth, the seller, was supposed to provide a copy of the seller's
disclosure to the buyer, Melanie, but he failed to do so. What type of contract is this? -
ANSVoidable
Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered
at 5 p.m. on May 3. By that date and time, there were four offers. The persons making these
offers are the _______. - ANSOfferrors
Which of the following must be present in order to prove fraud has occurred? - ANSIntentionally
withholding information
To meet the requirements of the statute of frauds, an agreement must clearly identify the
contract's subject matter, present the contract's essential terms and conditions, and ______ to
be enforceable. - ANSIdentify the contracting parties
Under the statute of frauds, which of the following agreements must be in writing? - ANSA real
estate sales contract
Jayne was tired of waiting for her subcontractor to get his part of the deal done. The
agreed-upon deadlines came and went, and Jayne lost money waiting for the subcontractor to
come through. She decided that if the subcontractor wasn't going to honor his commitments,
neither was she, so Jayne consulted with her attorney and then terminated the contract. This is
an example of ______. - ANSRescinding the contract unilaterally
Christine had barely accepted an offer from Lance before she changed her mind about selling
the house. What will happen to Lance's deposit that he submitted with his offer? - ANSIt will be
returned to Lance since Christine is breaching the contract
Jenny decided to bid on a house in her neighborhood. The auctioneer announced the lowest bid
that will buy the property. This is a(n) ______ auction. - ANSMinimum bid
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