Real Estate U Final
Exam 2 Questions
and Complete
Solutions Graded
A+
Denning [Date] [Course title]
, Which of the following are tax-deductible expenses resulting from home ownership? - Answer:
Mortgage interest and property taxes
Which of the following is true regarding the $500,000 exemption, in the sale of a personal residence, for
a married couple filing jointly? - Answer: A married couple can use the $500,000 joint exemption if only
one meets the ownership requirement,
but BOTH meet the occupancy requirement
A homeowner in NC had constructed a three-bedroom house with two full baths in a rural area that
necessitated the installation of an on-site septic system. It was properly permitted at that time. A few
years later the homeowner constructed a fourth bedroom, but no extra bathroom, in the basement
area. He did not obtain any permits at that time as he was constructing the addition by himself. He now
wants to list the property for sale with a broker. What would be the maximum intended occupancy for
this house according to NC guidelines? - Answer: 6
Chris is a real estate broker in NC. He lists a parcel of undeveloped land, which is zoned for single-family
residential use. Chris knows that this property is about to be rezoned for multi-family residential use,
which will greatly increase the value of the property. Rather than informing the seller of this fact, Chris
offers to buy the property at the listed price, telling the seller that he wants to acquire the property as a
long-term investment. The deal closes. Several months later, after the rezoning had been accomplished,
Chris sold the property for a $80,000 profit. The seller soon finds out about the profit Chris has made.
What can the seller do in this case? - Answer: Notify the NCREC to impose disciplinary action
Which of the following is an example of a blind ad? - Answer: Just listed! Home for sale. $250,000. Call
Mary at (919)555-5555 for more information.
A settlement meeting is usually conducted by a closing attorney. Who typically recommends the closing
attorney? - Answer: The buyer or the buyer's lender
A firm license is NOT required for which of the following? - Answer: a sole proprietorship
James is a broker in NC and is also licensed as an attorney. He is buying a house and wants to rewrite
part of the sales contract. Is James permitted to do so? - Answer: Yes. Since James is also an attorney
and the buyer, he is permitted to rewrite parts of the contract.
Exam 2 Questions
and Complete
Solutions Graded
A+
Denning [Date] [Course title]
, Which of the following are tax-deductible expenses resulting from home ownership? - Answer:
Mortgage interest and property taxes
Which of the following is true regarding the $500,000 exemption, in the sale of a personal residence, for
a married couple filing jointly? - Answer: A married couple can use the $500,000 joint exemption if only
one meets the ownership requirement,
but BOTH meet the occupancy requirement
A homeowner in NC had constructed a three-bedroom house with two full baths in a rural area that
necessitated the installation of an on-site septic system. It was properly permitted at that time. A few
years later the homeowner constructed a fourth bedroom, but no extra bathroom, in the basement
area. He did not obtain any permits at that time as he was constructing the addition by himself. He now
wants to list the property for sale with a broker. What would be the maximum intended occupancy for
this house according to NC guidelines? - Answer: 6
Chris is a real estate broker in NC. He lists a parcel of undeveloped land, which is zoned for single-family
residential use. Chris knows that this property is about to be rezoned for multi-family residential use,
which will greatly increase the value of the property. Rather than informing the seller of this fact, Chris
offers to buy the property at the listed price, telling the seller that he wants to acquire the property as a
long-term investment. The deal closes. Several months later, after the rezoning had been accomplished,
Chris sold the property for a $80,000 profit. The seller soon finds out about the profit Chris has made.
What can the seller do in this case? - Answer: Notify the NCREC to impose disciplinary action
Which of the following is an example of a blind ad? - Answer: Just listed! Home for sale. $250,000. Call
Mary at (919)555-5555 for more information.
A settlement meeting is usually conducted by a closing attorney. Who typically recommends the closing
attorney? - Answer: The buyer or the buyer's lender
A firm license is NOT required for which of the following? - Answer: a sole proprietorship
James is a broker in NC and is also licensed as an attorney. He is buying a house and wants to rewrite
part of the sales contract. Is James permitted to do so? - Answer: Yes. Since James is also an attorney
and the buyer, he is permitted to rewrite parts of the contract.
