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NC real estate license exam prep Flashcards | StudBud
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NC real estate license exam prep
NC real estate license exam prep
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1
Previous owner has an easement appurtenant on property. New owners is opposed. This particular form of easement
Transfers with the property
Transfers with the owner to a new property
Becomes a license on the property
Terminates
2
Real estate advertising must conform to regulatory standards and requirements. One is
A broker may only place blind ads and social media outlets
Sales agents may only advertise in their own name
The advertising must not be deceptive
A broker must have all advertising approved by the local real estate board
3
Which of the following contracts must be in writing to be enforceable
Executory contract
Two year lease
Patrol contract
Six month lease
4
County or municipal authority usually grants a certificate of occupancy for new construction only after
Construction conforms to building codes
Tax assessor has valued the improvement
All work has been completed for at least 60 days
Contractors work has been inspected
5
Lease that charges rent per square foot a common area fee and a portion of the store owners gross income from property
Proprietors lease
Retailers gross lease
Title charge or triple net lease
Percentage lease
6
The amount of a real estate brokers commission is established by
The local board of realtors
Negotiation with clients
State real estate license law
Agreement among competing brokers
7
Owner is precluded by deed restriction from developing 30ft boat dock. Limitation prompts owner to sell. New owners
Is free to build the dock since the next-door neighbor built a similar dock
Takes little subject to the same restriction
Can build the dock with special permission from the zoning board
May build, since the restriction is extinguished by the sale
8
Junior liens the order of payment property is generally establish according to
Whether they lien was subordinated.
The order of disbursement.
The date of recordation
What form of tax is in question.
9
A protection period clause is an exclusive listing provides that
Agent has a claim to commission if sold or leased following list expiration
Agents are entitled to extending a listing agreement
Owner is protected from all liabilities
10
A principal instructs an agent to tell minority buyers the property for lease is no longer available. Agent refuses to
Agent is liable for breaching the listing terms
Agent should exercise caution Until listing expires
Principal has proposed an illegal act which should not be obeyed
Agent may sue the principal for discrimination and misrepresentation
11
What is the essential purpose of legal description of real property
create a consistent, unchanging standard for uniquely locating property
Eliminate cumbersome metes and bounds descriptions
comply with common law for real property
To enable courts and attorneys to calculate property size accurately
12
A condominium owner enjoys a
Fee simple ownership of air space, Undivided share of property common areas
Fee simple ownership of a pro rata share
Tenancy in common interest and air space and common areas of the property.
Share in an association that owns one’s apartment
13
Firms in a market agree to pay sales agents 15% more than any other competitor is an example of
Allocation of markets
Price fixing
Collusion
Steering
14
Temporarily installed produce coolers in a leased farm stand the cooler would be considered
Trade features that are real property
Emblements
Temporary real property
Trade features that are personal property
15
What fundamental legal purpose is fulfilled by title records
Preventing identity theft
Keeping the county appraised of tax payments
Giving constructive notice of one’s right and interest in the property.
16
Marie acquires property from her uncle when she dies the state will pass to his niece
Fee simple defeasible estate
Conventional life estate
Legal life estate
Tenancy by the entireties
17
Restrict certain uses of a property. Violation gives the grantor the right to retake possession of the property.
Deed in trust
Deed in Lou of foreclosure
Deed of trust
Deed conditions
18
One difference between a cooperative estate and a condominium estate is
Condominium owns air space, co-op owns proprietary lease
Condominium common elements and air space, coop only own the apartment
Condominium sale adversely affect other unit owners
Coop owners own stock, condominium owners simply a property lease
19
What is chain of title
Involuntary conveyance of title by statutory rules of descent
List of all parties who have ever own real estate
Chronology of successive owners of record of a parcel of real estate
Bondo all rights link to the recorded title to a parcel
20
Which of the following characterizes metes and bounds description?
They incorporate elevation into the description
Identify an enclosed area beginning and ending at the same point
They use lot and block numbers
Use meridians and base lines
21
Bob obtained an owner listing to lease a building. Sue locates a tenant for it. They work for same broker. The BIC:
Is a implied agent
Is a Dual agent
Is a Single agent
Is a Sub agent
22
What is a hand lien theory state in contrast to a title theory state
A state in which liens are given priority over other encumbrances
Mortgagor retains title to the property when a mortgage lien is created
Holder of a mortgage lien receives title to mortgage property until paid
A state in which liens must be recorded to be enforceable
23
Client revokes exclusive right to sell listing prior to expiration because client is too busy to meet with agent
Agent can sue client for specific performance
Client may be liable for commission and marketing expenses
Agent must accept without damage recovery
Client is criminally liable for negligence
24
Deed restrictions attach to the title of the property therefore the restriction passes to the new buyer
True
False
25
Leases property to a business in exchange for rent tenant is required to pay all operating expenses
Percentage lease
Gross lease
Property lease
Net lease
26
Who are the essential parties involved in an Estate in trust
Trustee, title company, and beneficiary.
Owner, trust store and trustee.
Owner, throw store and a lawyer.
Trustor, trustee and beneficiary.
27
By changing any of the terms of an offer, the offeree creates a counter offer, and the original offer is
Becomes an executory contract
Counter offer
Has been excepted since the modification was a contingency
Void
28
A transaction facilitator in a residential transaction represents
The seller
Both seller and buyer
Neither seller or buyer
The buyer
29
Which of the following provides the strongest evidence of marketable title
And attorney‘s opinion.
A title certificate.
Title insurance.
A general warranty deed.
30
A transaction broker should disclose his or her agency relationship to prospective buyers and sellers
Immediately following completion of any offer
Upon completion of the listing agreement
Immediately prior to closing
Upon first substantive Communication
31
Converting personal property to real property by attaching it to real estate
Harvesting
Affixing /attachment
Severance/affixing
Dissolution
32
Lease automatically terminates on there which of the following circumstances
Leased property is foreclosed
Landlord cancels the lease
Tenant it fails to pay rent
Tenant goes out of business
33
Real estate contracts that are not personal service contracts
Are not assignable
Are exempt from the statute of frauds
Must be in writing
May be assigned
34
The highest form of ownership interest one can acquire in real estate
Conventional life estate
Legal life estate
Defeasible fee simple Estate
Absolutely fee simple Eastate
35
The conversion of real property to personal property by detaching it from real estate
Severance
Affixing
Assemblage
Application
36
The distinguishing feature of a defeasible fee simple estate is that
The estate may revert to a grantor or heirs if the prescribed use changes
It has no restrictions on use
It is of unlimited duration
It can be passed on to heirs
