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Flashcards in MID TERM EXAM NC SECTION Deck (10)
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1

The State of North Carolina Residential Property and Owner’s Association Disclosure Statement is required for…

First sale of a dwelling which has been newly constructed
Lease with an Option to Purchase where the lessee intends to occupy the dwelling.
Single family homes, condos, townhouses, and buildings up to four dwelling units.
Must be furnished in connection with the sale, exchange, option, and sale under a lease with option to purchase where the tenant does not occupy or intend to occupy the dwelling

I only
II only
II and III
III and IV

ANSWER

2

What statement is TRUE regarding the North Carolina Residential Property and Owner’s Association Disclosure Statement?

The seller must promptly give the buyer a corrected statement if anything happens to the property that would make the original statement incorrect or inaccurate.

The seller can check “No Representation” and their representing broker cannot disclose anything they know because it would violate their fiduciary duties to their client.

The representing seller’s broker can fill it out for their client as a part of their fiduciary duties

If a seller marks “yes’ for any question, they do not have to disclose any information about the issue because North Carolina is a Caveat Emptor state.

ANSWER

3

Which statement is FALSE pertaining to the State of North Carolina Mineral, Oil, and Gas Rights Mandatory Disclosure Statement?

It transfers between parties when both parties agree not to provide the Residential Property and Owner’s Association Disclosure Statement.
It is not required for a new dwelling that has never been inhabited.
It is required for both condos and townhouses.
It is required for vacant land

ANSWER

4

In North Carolina, which statements are TRUE regarding Ernest Money deposits and the Due Diligence period within a real estate contract.

The buyer will be entitled to a return of the earnest money if s/he timely terminates the contract prior to the expiration of his/her due diligence period

After the expiration of the due diligence period, the buyer breaches the contract and fails to consummate the transaction, then the amount of the due diligence fee and earnest money deposit will be the only sums the seller receives as damages for buyer’s breach.

After the expiration of the due diligence period, the buyer breaches the contract and fails to consummate the transaction, then the amount of the due diligence fee would be the only sum the seller receives as damages for buyer’s breach.


I only
II only
I and III
I and II.

ANSWER

5

According to the guidelines set forth by the North Carolina Real Estate Commission in the Residential Square Footage Guidelines, heated living area is a space that is heated by a conventional heating system or systems. This type of system or systems which would NOT fall under these guidelines would be…

A forced air unit
A fire places
Radiant solar heat system
Electric heating system

ANSWER

6

In North Carolina, An unlicensed salaried employee of a broker may NOT

Assemble documents for a closing
(B) Show properties for sale.
(C) Confirm appointments for those who have a license.
(D) Act as a courier to deliver documents.

ANSWER

7

In North Carolina, all written agency agreements must have

A list of authorizations by the client for the agent to follow.
Contain a nondiscrimination provision
The individual agent’s license number
A list of duties that the client asks for the agent to do.

ANSWER

8

In North Carolina, the maximum amount that a real estate broker can keep and maintain in his/her trust account is…

$100.00
$500.00
Only a Broker In Charge can keep funds in a trust account
Whatever amount that the bank requires.

ANSWER

9

The right to occupy a property for five or more periods of time involving five or more years is considered a…

Time-Share
Interest in real property

I only
II only
Both I and II
Neither I nor II

ANSWER

10

In North Carolina, which one of the following does NOT require a real estate license?

Guardian
Attorney in Fact
Trustee
All the Above

ANSWER