REAL ESTATE U FINAL EXAM AND FINAL
PRACTICE EXAM LATEST 2023-2024 ACTUAL
EXAM 300 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+
,Are unlicensed assistants allowed to record and deposit trust money deposits and
maintain trust account records under the close supervision of the offer broker-in-
charge? - ANSWER-Yes
What entities must have a firm license to operate as a broker in North Carolina? -
ANSWER-Any type other than sole proprietorships.
When should written authority for dual agency be reduced to writing? - ANSWER-No
later than the time that one of the parties represented by the broker makes an offer to
purchase, sell, rent, lease, or exchange real estate to another party.
What is designated agency? - ANSWER-Refers to a situation where the buyer and the
seller each have their own agent, but both of those agents work for the same real estate
company.
Property tax rates can be adjusted.... - ANSWER-Once a year.
What is dual agency? - ANSWER-Describe using the same agent for both the buyer
and the seller.
What is considered living space and should not be included in the living area
calculation? - ANSWER-Areas that are heated and cooled and livable; Garages are not
considered living space.
As an agent, when you receive multiple offers on a property, how must those offers be
presented? - ANSWER-ALL of the offers must be presented to the seller.
Every broker shall deliver a copy of any written agency agreement, contract, offer,
lease, rental agreement, option, or other related transaction document to their customer
or client within.... - ANSWER-3 business days of the broker's receipt of the executed
document.
The Buyer and Seller execute a purchase contract for 127,000. Five days later, the
Buyer asks the Seller to increase the sales price to 129,730.50 to cover a funding fee.
What is this to the contract? - ANSWER-Amendment
If a seller makes any changes in an offer from a buyer prior to acceptance, the buyer -
ANSWER-Is relieved of the original offer
Which of the following is the best explanation of an option? - ANSWER-An agreement
granting exclusive right to buy, sell, or lease property at a given price within a stated
period of time
,During the executory period of a sale contract, the buyer enjoys which of the following
interests? - ANSWER-Equitable title
Who are the parties to a Listing Agreement? - ANSWER-Seller and Broker
The seller makes a counteroffer. The buyer accepts and decides to reply using "snail
mail" when is a valid purchase contract created using the Post Office? - ANSWER-
When the offer puts the acceptance in the mail
For a contract to be enforceable it should - ANSWER-None of the above:
Incorrect - See unit: Real estate contract law Screen 2 of 6 (correct possibly in writing)
They buyer signs a contract for deed, but five years after making all monthly payments
the buyer fails to submit a payment. The seller gets a judgement to reclaim property
because of what? - ANSWER-Acceleration Clause
A buyer submits an offer to the seller. While the seller is considering the offer, a buyer
calls and cancels the offer, saying the home was too expensive. The seller protests,
claiming she was going to accept the contract. Which of the following is true? -
ANSWER-The original offer is cancelled, the protest means nothing
A property owner wants to put 240,000 in the bank after selling a property and
accounting for all expenses. A broker finds a buyer and sells the property for 280,000.
Closing costs come to 10,000 and not including the broker's commission. According to
agreement, the remainder of the amount over 240,000 goes to the broker as
commission. The listing agreement is probably an - ANSWER-exclusive agency
agreement
Incorrect - See contracts (correct possibly net listing)
If a purchaser signs a contract under duress, it is generally - ANSWER-voidable by the
buyer
A realtor agrees by "a handshake" to sell the house of his former high school chemistry
teacher. Realtor finds a buyer who submits a full price offer with no provisions. The
house sells, but the Seller refuses to pay commission to realtor. What kind of contract
does the realtor have with the seller? - ANSWER-Unenforceable
Bill has a 2 year lease on a piece of property from Cathy with an option to purchase. Bill
paid 1,500 for the option to purchase. If Bill wishes to purchase the property at the end
of the lease he must inform Cathy in writing within 60 days of lease expiration. Bill sells
his option to purchase to Zepeda for 10,000. Cathy does not like Zepeda and would like
to not sell the property to them. Zepeda decides to enact his option. Cathy can do what?
ANSWER - -refuse to sell and take Zepeda to court. Zepeda will most likely loose
because the option was assigned to him
, Incorrect - See Contracts (possibly correct: contract is assignable unless specifically
stated in the contract)
Of the following, which is NOT necessary to have a valid contract for the Sale of Real
Estate? - ANSWER-Earnest money
What is this:
A seller may employ a number of brokers. Only the broker who produces the buyer
earns a commission. The seller may sell the property. - ANSWER-Open listing
When is an offer to purchase property accepted? - ANSWER-The seller accepts and the
signed contract is delivered to the buyer
Allen who is a lender, wishes to make the yield on a loan lower than the current market
value. What would Allen charge to make the loan more competitive? - ANSWER-
Discount Points
Adam was trying to get a home loan and was rejected. Because of the Federal Equal
Credit Opportunity Act, Adam must be notified in writing for the reason she was denied
within.. - ANSWER-30 days
Albert is a home-builder and seeks financing from his local bank to fund his houses so
he can sell them to a customer in the near future. What type of financing did Albert
receive? - ANSWER-Construction Loan
This loan type is characterized by equal monthly payments credited first to interest due.
Then, the remainder of the payment is applied to the loan balance. - ANSWER-
Amortized Loan
In general, the borrower no longer pays Mortgage Insurance when the Loan-to-Value
equals... - ANSWER-0.8
Which of the following best describes Regulation Z? - ANSWER-Regulation of mortgage
interest rates
Incorrect - See Financing
An industrious Realtor advertised a house listed for $125,000 as, "Move-in for Only
$671.00 /Month." Did the Realtor violate any restriction? - ANSWER-Yes. Regulation Z
Which of the following Secondary Mortgage Market entities can purchase FHA and VA
loans? - ANSWER-All of them: Fannie Mae, Ginnie Mae, Freddie Mac
Of the following sources of loan money, which does not service their loans? - ANSWER-
Mortgage Broker
