Simulated Exam Prep

MANTLE REALTY

An unlicensed property manager can do all of the following except:
- Maintenance
- Furnish published information
- Show units
- Negotiate lease terms
A broker's trust or escrow account must be held in which of the following?
- A federally insured depository institution
- A financial institution with at least two banking locations
- A bank in the town where the firm's office is located
- A bank offering after hours deposit capability
Timeshares in North Carolina are considered a/an:
- Interest in real estate
- Chattel
- Estate at sufferance
- Lis pendens
An agent's duties to his/her principal include all of the following except:
- Accounting
- Loyalty
- Obedience
- Confidentiality
A property management account:
- Can earn interest
- Can earn interest that gets paid to the tenant
- Can earn interest that gets paid to the broker
- Must be non-interesting bearing
Reproducing a structure best describes:
- Building an exact replica of the structure
- Building the functional equivalent of the original structure
- Building something inferior to the original structure
- Building something superior to the original structure
In a settlement statement required by RESPA, the sales price is shown as a/an:
- Debit to the seller
- Credit to the seller
- Credit to the buyer
- None of the answers
The owner of a small strip mall refuses to lease to a tenant of Greek ancestry. Which law has been violated?
- The Housing and Community Development Act of 1974
- The Civil Right Act of 1866
- The Fair Housing Amendments Act of 1988
- No violation has occurred
How many square feet are in an acre?
- 43,650
- 42,650
- 43,560
- 46,350
What is the maximum amount a landlord can require a tenant to provide as a security deposit if the tenant were to sign a six month lease:
- An amount equal to three month's rent
- An amount equal to two moth's rent
- An amount equal to one and half month's rent
- An amount equal to one month's rent
A real estate firm who appoints an affiliated agent to represent the seller of a property at 567 Oak Alley, and appoints another affiliated agent to represent a buyer who wishes to make an offer on that same property is engaging in:
- Seller sub-agency
- Designated dual agency
- Commingling
- Partial agency
The period of time in which a building produces income attributable to the structure itself is its:
- Period of depreciation
- Economic obsolecence
- Effective age
- Economic life
Which of the following may not be included in real estate offers and sales contracts in North Carolina?
- Agent commission
- Loan information
- The amount of any special assessment
- Any portion of the purchase price that will be paid by a promissory note
An agent was informed that the heat exchanger in the furnace was cracked. The agent did not inform the seller. The agent showed the house to a customer and said nothing about the furnace. Three weeks after the buyer moved in, 3 out of the 4 family members died of carbon monoxide poisoning. What could happen to the salesperson?
- All of the answers
- Civil litigation
- Disciplinary action from the state board
- Criminal prosecution
At a weekly business meeting, two agents from two different firms discover that they are both trying to list the same house. The argument that followed stemmed from one agent scolding the other for offering to take the listing at 6%. Their broker's policies are to take 7% listings. Which law, if any, have the agents violated?
- Agency law
- Title VIII
- License law
- The Sherman Antitrust law
Your bundle of rights includes all of the following except:
- Right of enjoyment
- Right of disposal
- Right of use
- Right of encroachment
Which of the following would not be depreciated?
- A 2700 sq.ft commercial building
- An abandoned building
- Unimproved land leases for an open storage
- A residential property used as a rental
Section 8 contains 640 acres. The NW 1/4 of the SW 1/4 of Section 8 contains how many acres?
- 40
- 120
- 80
- 320
The leasehold estate that has a specified termination date is a/an:
- Estate for years
- Joint tenancy
- Periodic tenancy
- Tenancy at will
Genuine assent means:
- Consent must be freely given before a contract can be legally binding
- A contract can be binding, even under frauds
- A contract can be binding, even under duress
- A contract can be binding, even under undue influence
The offeror is the person who:
- Accepts the offer
- Breaches the contract
- Makes the offer
- Performs as agreed
A broker who receives an offer to purchase a property owned by his or her principal must deliver that offer:
- Immediately or within three business days of the receipt
- As soon as possible
- Immediately or under no circumstances later than 5 days from receipt
- Within 24 hours of receipt
A mortgagor had a $43,000 loan at 7%. What would the new principal be after the third payment, if the monthly payment was $287?
- $42,963
- $42,891
- $42,927
- $39,990
You are showing a potential renter an apartment. The renter lets you know that he/she is currently in drug rehabilitation therapy for cocaine addiction. You should:
- Let the renter know that you will be charging him/her more rent than any other tenant
- Immediately ask the potential renter to leave and call the police
- Show the renter property closer to his/her drug rehabilitation clinic
- Not discriminate against the renter, as the renter is in a protected class
The Lead Based Paint Hazard Reduction Act requires that which of the following have disclosure obligations?
- appraisers
- attorneys in fact
- attorneys in law
- lessors, sellers and renovators
Patent defects are
- hidden
- obvious
- part of the government's Police Powers
- never an issue in negotiations
How many classroom hours of post licensing education must a provisional broker complete?
- 8
- 90
- 60
- 30
The closing for the sale of an investor-owned 2-unit apartment building is set for June 10. Each unit is rented for $500, collected in advance. Using the Statutory Month Method, the proration on the closing disclosure will read:
- $666.67 SC/BD
- $666.67 SD/BC
- $333.33 SD/BC
- $333.33 SC/BD
Provisional broker Nancy of XYZ Realty successfully negotiates acceptable terms for the purchase of a home on behalf of her buyer clients. The offer to purchase and contract calls for XYZ Realty to hold a $1,000 earnest money deposit in the firm's trust account. Nancy's buyer clients write the earnest money deposit check to XYZ Realty and give it to her. Based on these facts Nancy may do which of the following:
- Follow XYZ's company policy concerning the handling of earnest money
- Deposit the check in to a trust account she manages on behalf of her clients
- Hold the check until the next business day and then deliver it to XYZ's Broker-in Charge
- Immediately deliver the check to the XYZ's Broker-in-Charge
The rule that says a buyer will not pay more for a property than a comparable substitute best describes:
- The rule of supply and demand
- The rule of conformity
- The rule of substitution
- The rule of contribution
The agreement whereby a broker is entitled to be paid a commission by a buyer is a/an:
- Buyer broker contract
- Purchase agreement
- Option
- Listing agreement
A retail building contains 10,000 sf of gross building area (GBA). The property is worth $125/sf of GBA. The owner sells the property for its market value, and pays a 4% commission. The total commission is
- $50,000
- $75,000
- $30,000
- $100,000
Transferring one's rights or obligations under a contract to another and being relieved of liability best describes:
- Consideration
- Declaration
- Assignment
- Novation
A non-provisional broker is aware that a neighbor wishes to sell a vacant lot located in his neighborhood. The broker calls the lot owner and asks if he would he be willing to sell his vacant property if the broker were to generate an acceptable offer. The owner affirms that he would be willing to sell his lot if the broker found a buyer. No agency relationship was created nor did either party have a written agreement. The broker places his firm's "for sale" sign on the vacant lot so that he can attract potential buyers. Based on this scenario the broker has:
- Acting in accordance with real estate commission rules concerning agency relationships
- Acted in accordance with real estate commission rules concerning advertising Choice
- Violated Real Estate Commission rules concerning advertising
- Violated Real Estate Commission rules regarding agency relationships
After their first license renewal brokers who wish to remain on active status must take a 4 hour elective course:
- Classroom only
- Online or in a classroom
- Online and in a classroom
- Online only
What regulation under the Truth-in-Lending Act requires a lender to disclose credit costs?
- Regulation A
- Regulation D
- Regulation C
- Regulation Z
Which of these is not a contract?
- Option
- License
- Purchase agreement
- Listing agreement
Which of the following is not part of the secondary market?
- Federal universal mortgage association
- Federal home loan mortgage corporation
- Governmental national mortgage association
- Federal national mortgage association
In order for a buyer to be certain that a property he is purchasing has no encroachments, he should obtain:
- Certificate of no defense
- Purchaser policy of title insurance
- Survey
- Abstract of title
Which of the following is not true of the Federal Housing Administration?
- Guarantees mortgage loans
- Administered by the department of housing and urban development
- Helps buyers with low down payments
- Enacted by governmental legislation
Which of the following is not a material fact:
- A buyer's comment to their buyer agent indicating a willingness to pay the asking price for a property if the seller fails to accept their initial offer which is $10,000 below the list price
- An agent's discovery that the septic permit for a home with three physical bedrooms confirms approval for two bedrooms
- A news report highlighting the approval of a new four lane highway to be constructed on property directly adjacent to your listing
- Knowledge that a seller has received notice of foreclosure
The first instrument a buyer usually signs in a real estate transaction is a/an:
- Deed
- Listing agreement
- Mortgage
- Offer to purchase
The full legal ownership of property plus the bundle of rights as they apply to it is called having:
- Legal title
- Public title
- Equitable title
- Tenant title
When the principal terminates the agency relationship before it expires, it is called:
- Renunciation
- Recission
- Repudiation
- Revocation
Which of the following classes is protected under the Equal Credit Opportunity Act but is not protected under the Federal Fair Housing Act?
- Sex
- Race
- Family status
- Income from public assistance
In a contract for Deed which is true regarding the "Power of Sale" clause ?
- With a "Power of Sale" clause a lender can foreclose without court oversight
- It helps the homeowner sell their property when they desire
- A homeowner can file a complaint in the courts to stop a Power of Sale
- A lender must file a complaint in the courts to regain possession of a property secured by a mortgage loan
A real estate investment business organized as a trust best describes a/an:
- Corporation
- General partnership
- REIT
- Limited liability company
Tim is a licensee with ABC Realty. Georgina approaches Tim and states "Your listing at 123 Main St is BEAUTIFUL! I have to buy it. When can I fill out an offer?" Tim discloses that he now has an agency relationship with Georgina, and receives informed, written consent from Georgina and Tim's seller for a dual agency relationship. Tim tells the seller how much Georgina loves the house. Is this a violation?
- No, because Tim is obligated to disclose material facts
- Yes, because a dual agent owes a fiduciary duty to the party making the offer
- No, because Tim is trying to help his seller in the negotiations
- Yes, because buyer motivation is a material fact and must not be disclosed if deemed confidential
When working with someone other than a client, a licensee may:
- Disclose information that is public record
- Draft a deed
- Choose not to disclose a latent defect
- Draft a blank land installment contract
Which of these is not considered when determining whether an item is a fixture or personal property?
- Manner of annexation
- Intention of the annexer
- The relationship of the parties
- Value of the annexed item
What power does the government exercise when it takes private property for public use?
- Eminent domain
- Adverse possession
- Condemnation
- Appropriation
Fixtures and showcases attached in a store that occupies rented space are considered:
- All of the answers
- Personal Property
- Trade fixtures
- Chattels
Which lien attaches to a property to prevent the transfer of title when there is a pending lawsuit that would affect the title to land?
- Commercial broker lien law
- Lis pendens
- Mechanic's lien
- Attachment
Broker Maryann is serving as a dual agent in the sale of 123 Main Street. She verbally negotiates an offer between the parties ultimately reaching an oral agreement. Broker Maryann types up the offer including the terms to which the parties orally agreed and e-mails one copy to the sellers and an identical copy to the buyers. The sellers send a signed copy of the offer, featuring only their signatures, to Broker Maryann by fax transmission. The buyers return an identical copy, featuring only their signatures by e-mail to Broker Maryann. Based on this fact situation Broker Maryann:
- Must now send a copy of the sellers signed offer to the buyers for a signature, and a copy of the buyers signed copy of the offer to the seller for signature before a contract is formed
- Now has a signed contract in counterparts and should communicate acceptance to both buyers and sellers
- Must have the seller review their closing disclosure before the end of the diligence period
- Should have circulated the offer to the buyer for signature first and then sent the buyer signed contract to the seller for signature in order to form a valid contract.
A house sells for $300,000. There is a 5% commission. The seller's closing costs amount to $8,500. The seller's mortgage of $250,000 must also be paid off. How much will the seller net?
- $18,500
- $15,000
- $26,500
- $20,500
What law creates an automatic lien on a commercial property, subject to the listing agreement?
- Agency law
- Lis pendens
- Broker lien law
- Attachment
A broker informs a homeowner that a member of a minority group may be moving into the neighborhood. The broker sees that the homeowner is very upset, and offers to buy his house at a low price. The broker is guilty of:
- Blockbusting
- Steering
- None of the answers
- Redlining
An agent representing both buyer and seller in the same transaction would be considered a:
- Dual Agent
- Single Agent
- Subagent
- Circumstantial agent
Section 8 contains 640 acres. The NW 1/4 and the SW 1/4 of Section 8 contains how many acres?
- 80
- 320
- 120
- 40
When buyers ask for help understanding the various ways of taking ownership (title), the agent should:
- Give all the details known about the different co-ownerships
- Advise the buyers to find out how their family took title
- Advise the buyers to ask their attorney
- Explain that married couples usually want a survivorship clause so they can avoid probate court
A real estate broker is required to observe all of the following rules concerning proof of licensure except:
- Brokers must carry their pocket card with them at all times while engaging in real estate brokerage
- Retain copies of all expired pocket cards for three years
- Licensees shall include his or her license number in agency contracts
- Licensees shall produce their pocket card whenever requested
If a property were sold with a restriction that all uses are acceptable except the operation of a convenience store on the premises, what type of estate is in effect?
- Conventional life estate
- Fee simple absolute
- Fee simple subject to a condition subsequent
- Fee simple determinable
When a buyer changes his mind and withdraws his offer to a purchase before it has been accepted by the seller, what should that broker do with the earnest money?
- Keep it as their commission
- Give it to the seller
- Return it to the buyer
- Pay it to the court
Of the following, which is not an encumbrance?
- Condition
- Appurtenant easement
- License
- Lien
The federal Junk Fax Prevention Act of 2005 allows the sender to transmit a fax if
- the sender has a legitimate reason to send the fax
- the recipient opts out of receiving such faxes
- the sender has an established business relationship with the recipient
- the broker is trying to get the recipients listing
When the owner of a fee simple estate grants another a life estate he/she often retains:
- A leasehold estate
- A remainder interest
- A homestead
- A reversionary interest
A listing agreement is an agreement between:
- Seller and managing/sponsoring broker
- Agent and broker
- Seller and designated agent
- Seller and buyer
Which of the following is an essential element of a valid deed in North Carolina:
- The deed must be signed by the grantors
- The deed must be sealed
- The deed must be witnessed
- The deed must be acknowledged
A grantor conveyed a vacant 1-acre track of land to a grantee. The grantee receives:
- 43,560 square feet
- 43,650 square feet
- 640 square feet
- 5,280 square feet
Which of the following would enhance the value of real property?
- A two-car garage
- An above-ground pool
- A picture of Mona Lisa hanging in the hallway of the home
- A toxic waste dump being built next door to the home
What would be considered evidence of the agency relationship between broker and seller?
- Buyer broker contract
- Power of attorney
- Agency disclosure statement
- Listing agreement
An instrument which protects the insured party against losses resulting from undiscovered defects and encumbrances (such as forgery in the record) is a/an:
- Certificate of title
- Chain of title
- Title insurance policy
- Abstract of title
The leasehold estate that can be terminated by either party and cannot be assigned is a/an:
- Tenancy at will
- Tenancy at sufferance
- Joint tenancy
- Periodic tenancy
The closing statement should be signed by:
- The seller
- The broker, buyer and seller
- The buyer
- The broker
Investment Banking is:
- A bank specializing in single investments for retirement funds
- A specific division of banking relating to the creation of Capital for other companies, governments, or other entities
- A group of underwriters working for one specific bank
- One bank very open to lending money to investors
A section of land legally described as the north one-half of the northwest quarter of the southeast quarter of a section of land, contains:
- 80 acres
- 20 acres
- 40 acres
- 10 acres
What type of agency relationship exists when a broker manages real property for the owner?
- General
- Special
- Major
- Limited
A dual agent cannot:
- All of the answers
- Negotiate on behalf of either buyer or seller
- Act in a biased manner toward either buyer or seller
- Advocate for either buyer or seller
An agent serving as the seller's sole representative of a property listed for sale has entered in to:
- An open listing agreement
- A protection agreement
- An exclusive agency agreement
- An exclusive right to sell listing agreement
The North Carolina Real Estate Commission requires brokers convicted of a misdemeanor to do which of the following:
- File with the Commission a report within 60 days of final judgement
- Request that the broker's license status be changed to "suspended"
- Perform 25 hours of community service within 60 days of final judgement
- Inform their Broker-in-Charge within 7 days of final judgement
Licensee Sam tells Seller Sue that "certain types of people" are moving into Sue's neighborhood. Sam is inducing panic in Sue. This is called
- Blockbusting
- Steering
- Defamation
- Price fixing
A title examiner tries to establish who is the present owner of a certain property by reviewing all the previous deeds of the previous owners he can find. The title examiner is trying to establish:
- certificate of sale
- certificate of title
- Chain of title
- certificate of no defense
The process wherethe government takes private property for public use best describes:
- Condemnation
- Escheat
- Eminent domain
- Taxation
A new house is completed January 28, but landscaping, cement walks and some painting are not completed. To insure that all items will be completed by April 15th the following year, the buyer should insist on:
- A promissory note from the builder for the cost of the items
- Taking out mechanic's lien insurance
- A written memorandum from the buyer to that effect
- Withholding money from the settlement to insure work will be done by April 15th
In title theory states, what clause is unique to the mortgage?
- Alienation
- Pre-payment penalty clause
- Acceleration
- Defeasance
The seller instructs the listing agent not to reveal the multiple offers that have been made on the seller's property. Another agent at the same brokerage, while on floor, takes a fax offthe fax machine . The floor agent recognizes the fax as an offer on the seller's listing. The agent on floor duty calls a buyer and advises the buyer to make an offer on the listing, because it may not be available if the seller accepts this offer. Can the managing broker be held liable for the actions of the floor agent?
- No duty has been breached
- No- the buyer's agent didn't know not to tell
- No- the seller has no right to instruct an agent not to tell
- Yes- the managing broker has a duty to protect the confidential information
A lot measures 1,000 ft x 3,000 ft in a market where land is valued at $25,000/acre. The commissison to be paid is 10%. How much will the seller net after he pays the commission?
- $3,000,000
- $1,721,763
- $1,549,587
- $1,893,939
A licensed North Carolina Real Estate Broker may do which of the following without violating law or Commission rule:
- Place a for sale sign on a vacant property with the owners verbal consent
- Pay an unlicensed assistant a commission for each transaction he or she closes
- Draft an option to purchase using guidelines provided in G.S. 93A-3(c)
- Fill in the blanks on a pre-printed sales contract containing all required elements.
George, a homeowner, lists his house with Agent Barney. When Barney brings a prospective buyer in a wheelchair over to George's house, George states "I know my rights! I want to exercise my rights to a federal exemption from Fair Housing!Don't show my house to anyone in a wheelchair!" Is George in the right?
- No. While it is true there are exemptions for owners under the Fair Housing Act of 1968, these exemptions cannot be claimed if the services of a licensee are use
- No. There are no exemptions to Fair Housing
- Yes. There are no protected class that covers persons in wheelchairs
- Yes. Barney must follow the fiduciary duty of Obedience, and obey the client
Which of the following may lawfully receive a commission related to a real estate transaction in North Carolina without having a real estate license?
- Colorado real estate broker with inactive license status
- Broker's assistant
- Home Inspector
- Travel agent
The selling agent with ABC Realty was paid a commission of $10,000 for the sale of 123 Main Street, a brick and frame bungalow with a full, unfinished basement. The commission rate was 5%. The cooperative commission with XYZ Realty was 50%. The selling agent's split with their sponsoring broker was 60-40, with 60% going to the selling agent. Rounded to the nearest dollar, how much did the house sell for?
- $444,444
- $333,333
- $666,667
- $777,778
Specific performance is:
- An executed contract in which all elements of the contract have been specifically fulfilled
- An legal remedy available to either party to enforce the terms of the contract
- The right of either party to cancel a contract, provided legal notice is given
- Agreement by all parties of a contract
Which of the following is true?
- You receive a lease in an condominium and a deed in a cooperative
- You receive a deed in cooperative and stock in a condominium
- You receive stock in a cooperative and a deed in a condominium
- You receive a deed in both a cooperative and a condominium
Which of the following is not a protected class under the Federal Fair Housing Act and its amendments?
- Race
- Familial status
- Religion
- Ancestry
Riparian rights of rivers and streams includes ownership of navigable waters to:
- Land owned to the midpoint of the stream
- Owns the river or stream
- No ownership of land
- Land owned to waters edge
What is the maximum amount a provisional broker may charge when preparing a comparative market analysis (CMA) or broker price opinion (BPO) for a customer or client?
- Up to seventy five dollars
- Whatever amount is acceptable to both the customer/client and the provisional broker
- Up to fifty dollars
- Provisional brokers may not charge a fee
Encumbrance and public interest are examples of what kind of interest?
- Possession
- Periodic
- Estate Interest
- Non-Possession
When broker Barbara receives two offers to purchase her listing at 789 Capital Court on the same afternoon she should:
- Send the seller an e-mail stating two offer were received but neither are very good and should be rejected
- Promptly contact the seller and ask when they can meet to review the offers
- Place both offers in the mail and wait for the seller to respond once they are received
- Choose the best offer and send it to the seller via fax while holding the offer she feels is inferior
Gross income best describes:
- Income minus debt service
- Income after expenses
- Income before expenses
- Income plus debt service
According to N.C.G.S. 93A-3(a) the North Carolina Real Estate Commission shall consist of:
- Two members who are not involved in the real estate or real estate appraisal business
- Nine members
- Seven members plus two alternates
- Three members holding real estate broker licenses