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Midterm #1 - Questions I Missed

Total questions: 24

Worksheet time: 48mins

Name
Class
Date
1.

provisional broker John works for Sandra, who is a BIC. Sandra has a listing that one of John’s buyer clients wants to see. In regards to the agency relationship that will be formed with John’s buyer client, what type of agency relationship with both John and Sandra have in this transaction?

a)

They will both be single agents

b)

They will both be dual agents

c)

They will both be assigned agents, if that is what the firm practices

d)

John will be assigned designated agent and Sandra will be a dual agent

2.

all of the following would be considered an appurtenance EXCEPT:

a)

A building on the property

b)

The right or privilege to exclude others from the property

c)

A fence that surrounds the property

d)

Growing crops that are attached to the ground

3.

a homeowner lives in a homeowners association that has some protective covenants originally created by the developer. One of the neighbors has constructed a shed on their property which violates these provisions. The homeowner would be able to enforce these by a process that would involve:

a)

Contacting the local zoning authority about the violation

b)

Submitting written notice of the violation to the developer

c)

Filing a lawsuit in court

d)

They cannot be enforced if the neighbor properly obtained a variance

4.

a buyer had their offer accepteded by the seller but has decided to cancel within the due diligence period. In this situation:

a)

The listing broker agent must complete the earnest money release form with the sellers and buyers signatures before releasing any earnest money’s to the buyer

b)

The buyer is entitled to a refund of both of their earnest money and their due diligence fee

c)

The earnest money must be returned to the buyer immediately

d)

The broker can only release the money to the buyer without the seller’s consent if the broker is acting as a dual agent

5.

In the state of North Carolina, building codes have been established to create minimum construction standards to assure the safety of the building occupants. Which of the following statements is correct regarding building codes?

a)

Building codes are created at the local level but enforced by the state

b)

Building codes are created and enforced at the local level

c)

Building codes are created at the state level through the Building Code Council but are enforced at the local level

d)

There are no building codes in North Carolina and enforcement of construction is done through zoning

6.

A life tenant who has received a conventional life estate may do all of the following EXCEPT:

a)

Sell their interest in the property

b)

Will their interest to their children

c)

Encumber the property

d)

Obtain a loan against the property

7.

There are two properties adjacent to each other. One of the properties benefits from the existence of an easement. In regard to the property that is benefiting, what is the easement called?

a)

Dominant easement

b)

Servient easement

c)

Easement in gross

d)

Easement appurtenant

8.

On June 1 - Sandra received a phone call from a buyer who asked if a particular property was still on the market. During the phone call, they scheduled an appointment with Sandra to see the property.


On June 5 - she met the buyers at her office and discuss with them their loan prequalifications and their reasons for moving.


On June 8 - the buyer wrote an offer on the property.


When must Sandra provide Byers with the NCREC brochure, Working With Real Estate Agents?

a)

On June 1 when I first contacted her

b)

On June 1 because she plans to show them the property

c)

On June 5 when she met with them in her office

d)

On June 8 prior to the buyers writing an offer

9.

Ben and Jerry decided to purchase a property and took title as tenants in common. If Jerry dies intestate, who will control his interest in the property?

a)

Whoever Jerry has named in his will

b)

Ben will own the property

c)

Jerry’s spouse and children will own the property

d)

The property will be owned according to state law’s on intestate secession

10.

all of the following would create an agency relationship, EXCEPT:

a)

The payment of money

b)

A written agency contract between the buyer and agent

c)

An oral buyer agency agreement

d)

The actions of the parties

11.

An encumbrance that takes priority over all other liens on a property is:

a)

The lein for any unpaid property taxes

b)

Recorded mechanics lien

c)

Liens of the homeowners association

d)

Federal IRS income tax liens

12.

All of the following would be an encumbrance on a parcel of real estate, EXCEPT:

a)

Real estate taxes

b)

A loan made by a bank

c)

An easement

d)

Unpaid medical bills that are in collections

13.

Jack a buyer was never provided with a residential property disclosure statement by the seller. Under North Carolina law, Jack has the right to:

a)

Cancel his contract within five days

b)

Cancel his contract at any time prior to the closing

c)

Cancel his contract within three days of the date of his offer

d)

Cancel his contract within three days of the date the contract was accepted

14.

he following statements are correct about tenancy by the entirety EXCEPT

a)

Property that is purchased after marriage, if held in both the husband and the wife’s names, will find a fault be entitled as tenants by the entirety.

b)

If a married couple becomes separated, any property they acquired after marriage will remain as tenants by the entirety unless they take action to change their ownership status

c)

Property acquired prior to marriage does not automatically become tenancy by the entirety of ownership

d)

If a married couple becomes divorced, any property acquired during the marriage that was deeded as tenancy by the entirety‘s will remain as such

15.

which of the following statements is correct regarding North Carolina residential property disclosure act?

I - sellers are required to disclose any defects in their property

II - if the buyer does not receive the North Carolina residential property disclosure statement by time of the offer, then the buyer has five calendar days to cancel the sales contract

a)

I ONLY

b)

II ONLY

c)

BOTH I AND II

d)

NEITHER I OR II

16.

In many states, other than North Carolina, property is considered to be equal between husband and wife. Any property acquired during the marriage is deemed to have had been obtained by mutual effort. When a spouse dies, the surviving spouse retains their half interest in the property and the other half of the state is inherited by the descendant’s heirs. In what manner do these people hold title?

a)

Joint tenancy

b)

Tenancy in common

c)

Community property

d)

Tenancy by the entireties

17.

all of the following would be a ways in which an agency relationship can be determined without the parties incurring any further liability EXCEPT:

a)

Death of the Principal

b)

Destruction of the property

c)

Unilateral revocation

d)

Filing of bankruptcy by the seller

18.

during the pre-viewing of the property, the prospective buyer asks the listing agent about whether or not a garage located on the property is within the boundaries of the property line. If the garage extends over the property line. Which the following statements is false:

a)

The agent should advise The buyer to get a survey

b)

The seller is required to disclose the existence of the encroachment on the sellers property disclosure

c)

The existence of an easement for such a purpose would solve an encroachment problem

d)

If the garage has existed for a required statutory period, the issue may be resolved by the existence of a prescriptive easement

19.

a valid and enforceable contract must have all the following elements EXCEPT

a)

Contain a meeting of the minds

b)

Before a legal purpose

c)

Monetary consideration

d)

Competent parties

20.

an offer to purchase would include all of the following EXCEPT

a)

Confirmation of the agency relationship of the parties

b)

The fees to be charged to the parties

c)

An accurate description of the property

d)

Obligations and duties of the buyer to the seller

21.

A buyer tendered an offer to purchase with a ten-day due diligence. And a settlement date for 30 days later the buyer provided a $3000 earnest money deposit and a $500 due diligence fee. Three days prior to closing, the buyer lost their job and now cannot complete the transaction. Under this scenario, what would be the Disposition of the funds?

a)

The buyer will get back their earnest money deposit and due diligence fee

b)

The buyer will lose both their earnest money and due diligence fee

c)

The buyer loses their due diligence fee but will get back there earnest money

d)

The buyer will lose their earnest money but will get back their due diligence fee

22.

Under which of the following types of listing agreements will an agent be paid only if they or another agent find the buyer, but not if the seller sells the property on their own?

a)

Open listing

b)

Net listing

c)

Exclusive right to sell listing

d)

Exclusive agency listing

23.

A bargain and sale deed will contain which of the following covenants?

a)

Covenant against encumbrances

b)

Covenant of further assurances

c)

Covenant of seizin

d)

Covenant of quiet enjoyment

24.

When someone dies testate, the people who inherit the descendants real property from an executor would be receiving

a)

Legacy

b)

Bequest

c)

Devise

d)

Descent