NC Post Exam 301 Unit 4 Latest Update
Graded A+
What is an option contract in real estate?
✔✔ A contract that gives the buyer the right, but not the obligation, to purchase a property at a
specified price within a certain period.
What is the purpose of a property management agreement?
✔✔ To outline the responsibilities and compensation for managing a rental property.
What is a common method for calculating the gross rental yield of a property?
✔✔ Divide the annual rental income by the property’s purchase price and multiply by 100.
What is the term for the process of evaluating a property’s condition and determining its market
value?
✔✔ Property appraisal.
What is an easement in real estate?
✔✔ A legal right to use another person’s property for a specific purpose.
1
, What must a seller disclose about the condition of the property before closing?
✔✔ Any known defects or issues that could affect the property's value or safety.
What is the typical duration of a commercial lease?
✔✔ It often ranges from 3 to 10 years, depending on the agreement.
What does “zoning” refer to in real estate?
✔✔ The regulation of land use by local governments to control the development of property.
What is a deed of trust?
✔✔ A document that secures a loan by transferring the title of the property to a trustee until the
loan is repaid.
What is a “walk-through” inspection in real estate?
✔✔ A final inspection of the property by the buyer before closing to ensure it is in the agreed-
upon condition.
2
Graded A+
What is an option contract in real estate?
✔✔ A contract that gives the buyer the right, but not the obligation, to purchase a property at a
specified price within a certain period.
What is the purpose of a property management agreement?
✔✔ To outline the responsibilities and compensation for managing a rental property.
What is a common method for calculating the gross rental yield of a property?
✔✔ Divide the annual rental income by the property’s purchase price and multiply by 100.
What is the term for the process of evaluating a property’s condition and determining its market
value?
✔✔ Property appraisal.
What is an easement in real estate?
✔✔ A legal right to use another person’s property for a specific purpose.
1
, What must a seller disclose about the condition of the property before closing?
✔✔ Any known defects or issues that could affect the property's value or safety.
What is the typical duration of a commercial lease?
✔✔ It often ranges from 3 to 10 years, depending on the agreement.
What does “zoning” refer to in real estate?
✔✔ The regulation of land use by local governments to control the development of property.
What is a deed of trust?
✔✔ A document that secures a loan by transferring the title of the property to a trustee until the
loan is repaid.
What is a “walk-through” inspection in real estate?
✔✔ A final inspection of the property by the buyer before closing to ensure it is in the agreed-
upon condition.
2
