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Mantle Realty
Search Homes
Map Search
Advanced Search
Sell Your Home
3D Virtual Real Estate Tours
Aerial Real Estate Photography & Videography
Professional Real Estate Photography & Processing
In-House Real Estate Marketing & Design
Communities We Serve
Greensboro NC
High Point NC
Kernersville NC
Lexington NC
Winston-Salem
Lewisville and Clemmons
King NC
Mocksville NC
Other Areas
Salisbury NC
Lake Norman
High Rock Lake
About Mantle
Mantle Real Estate Agents
Blog
Contact Mantle
Review Us
Resources
Guide to Buying a Home
Guide to Selling Your Home
Home Buyer Terms
Utilities Contact Info
Featured Vendors
Swag
Home
Simulated Exam Prep
Simulated Exam Prep
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
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