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Worksheetswrong questions Apendix A, unit 3 , 4 , 5 & 6
Total questions: 35
Worksheet time: 18mins
Which of the following statements regarding property management is/are true?
I. Property managers are required to hold a real estate license only if the manager is performing a management act on the behalf of someone other than themselves or their employer.
II. Certain salaried employees of property management companies are not required to hold a real estate license when their activities do not include negotiating contracts.
I only
II only
Both I and II
Neither I and II
Which of the following is TRUE regarding a corporation that owns real property and has an employee negotiate the sale?
Which of the following is TRUE regarding a corporation that owns real property and has an employee negotiate the sale?
The employee must hold a real estate sales license
Corporations are unable to acquire real estate licenses
Neither the corporation nor its employees need a license
The NC Real Estate Commission shall have the power to revoke or suspend a licensee’s license if he is found guilty of
I. Making any false promises
II. Acting for more than one party in a transaction without the knowledge of all parties
I Only
II Only
Both I and II
Neither I nor II
All of the following are grounds for suspension or revoking a provisional broker's license, EXCEPT?
With express consent of the seller of a listed property, a provisional broker accepts a finder’s fee directly from the purchaser of a property
A provisional broker representing the buyer discloses confidential information about the seller
A provisional broker advises a couple purchasing a residence to own it as tenants by the entirety
A provisional broker drafts “listing contract” forms for use in his/her business
Which of the following statements regarding Trust Accounts is TRUE?
A brokerage is required to maintain a trust account when they only list property for sale.
The money must be held by an FDIC insured bank that has a physical location in North Carolina.
The brokerage can maintain one account which has earnest money deposits and security deposits in the same account.
The brokerage must deposit cash within 3 banking days from the effective date of contract or face action from the Commission.
Which of the following statements is UNTRUE regarding an easement in gross?
A properly recorded easement in gross can involve a single property or many separate easements over contiguous neighboring properties to accomplish the goals of the easement holder.
The beneficiary of the easement in gross is the dominant tenement.
A utility company who is the beneficiary of an easement in gross may transfer this easement to a subsequent beneficiary if the utility company is sold or absorbed.
A personal easement in gross is not transferrable to a subsequent beneficiary.
Which of the following is correct regarding the legal status of appurtenant easements in North Carolina?
An appurtenant easement is subject to the restrictions of the Statute of Frauds but not covered under the Conner Act
should the properties involved in the appurtenant easement be merged, the new owner shall have the option of keeping the easement or removing it.
The easement itself is located on a piece of property known legally as the servient tenement.
The dominant tenement will share in the cost burden of maintaining a shared driveway created by an appurtenant easement.
In North Carolina, the Machinery Act requires each parcel of real property to be reappraised for tax purposes every
year
3 years
4 years
8 years
Ricky Sorrens purchased a home in 2013 which he financed with a properly recorded mortgage note and deed of trust to First Debt Savings and Loan Association. On September 15, 2014, Mr. Sorrens borrowed $10,000 from a finance company to send a child to college. To secure the $10,000 loan, the finance company placed a second mortgage on Mr. Sorrens property and recorded it on September 16, 2014. On October 1, 2015, Mr. Sorrens had a solar hot water system attached to his home, which he failed to pay for. If Mr. Sorrens defaulted on his second mortgage loan and the solar system installer properly filed a mechanic’s lien against Mr. Sorrens property, which of the following lien priority rankings is correct?
First Debt Savings and Loan’s deed of trust, the finance company’s lien, the mechanics lien
The finance company’s lien, First Debt Savings and Loan’s deed of trust, the mechanic’s lien
The mechanic’s lien, First Debt Savings and loan’ s deed of trust, the finance company’s lien .
The mechanic’s lien, the finance company’s lien, First Debt Savings and loan’s deed of trust
Mr. Gardener planted several trees near his property boundary. After years of growing, their roots and branches have extended over onto his neighbor’s property, and
I. Are considered to be an encroachment
II. Create an encumbrance
I Only
II Only
Both I and II
Neither I nor II
A property is located in Durham, North Carolina city limits recently sold for $195,000. The county assessed value is 90% of fair market value. The city tax rate is $0.55 and county tax rate is $1.05. What is the monthly property tax liability, rounded to the nearest dollar?
$2,808
$1,843
$260
$ 234
Which of the following is true of specific liens against property?
A mortgage lien would allow the lender to initiate foreclosure proceedings against multiple parcels of real property owned by a borrower who has defaulted on one mortgage loan
If a borrower defaults on a mortgage note, the specific lien would be attached to them personally and therefore impact all of their assets
Though a borrower may have taken out multiple mortgage notes on several properties, any enforcement of a mortgage lien would be limited to foreclosure proceedings on the one specific property in question
Real property taxes become a lien on January 6 of the current tax year
Which of the following best describes the system of legal description of property in which uses lot and block numbers thus making it the most common and issue-free method of describing property in the urban areas of North Carolina?
Metes and Bounds
Reference to a recorded plat
Torrens System
Government Rectangular Survey
What would be the total square footage of the lot described as: NW ½ SW ¼ W ½ E ½ SW ¼ S ½ Sec 24 TN 2N4E ?
27,225
54,450
217,800
108900
The dimensions of a rectangular lot are 120 feet wide by 450 feet deep. If lots in this subdivision sell for $30,000 per acre, what is the sales price of this lot (rounded to the nearest $1,000)?
$35,000
$36,000
$37,000
$47,000
When a seller warrants in a deed that he will forever defend the title he conveys against anyone who makes a claim against it, the deed is a
Special warranty deed
Quitclaim deed
Bargain and sale deed
General warranty deed
Trevor sold a lot that was 800' deep and 960,000 square feet to a neighbor that owned an adjoining lot along the same road. The neighbor's lot measured 1,000' X 700'. How many front feed did the neighbor own?1,500'
1,500'
1,900'
2,200'
2,500'
Which of the following documents is required to be recorded as public record in North Carolina in order to be enforced in a North Carolina court of law?
Deed
Real Estate Purchase Contract
Large Commercial Shopping Center Lease
All of the above
A deed that warrants only those defects in a title that originates during the grantor’s ownership is a
General warranty deed
Special warranty deed
Quitclaim deed
Trustee’s deed
Which of the following statements is INCORRECT regarding adverse possession in North Carolina?
I. Travis has fenced in the property of a neighbor for the last 28 years to his exclusive use without the permission of the legal owner. This could possibly be an example of adverse possession.
II. Leslye uses a small pond adjoining her property to fish and swim. Other neighbors in the area do the same. She has been doing so for nearly 40 years without ever seeking the permission of the owner of the property. This is a case that could lead to adverse possession.
I Only
II Only
Both I and II
Neither I nor II
All of the following are legal requirements for the validity of a deed in North Carolina, EXCEPT
Grantee's signature
Words of conveyance
Delivery and acceptance
Property description
An owner’s title insurance policy I. Remains in force indefinitely II. Renews annual at a lower premium
I Only
II Only
Both I and II
Neither I nor II
In order for a deed to be valid in North Carolina, it must be
Acknowledged
Dated
Recorded
Delivered
Which of the following is NOT an example of a voluntary alienation?
General Warranty Deed
Quitclaim Deed
Transfer of Title by Will
Gift Deed
According to the North Carolina Marketable Title Act, which of the following statements is likely to be accurate?
A property held by the same owners since 1970 will have no defects in the ability to convey Marketable Title as the result of actions by the previous grantors who sold them the property in 1970.
Closing attorneys have a responsibility only to research properties owned by the current grantor for less than 30 years.
Ownership of greater than 30 years results in an immediate cloud on title.
Marketable Title is any title held by the grantor for a minimum period of 30 years.
A deed that does not contain any warranty other than implying that the grantor owns the property is best defined as a
special warranty deed.
bargain and sale deed.
quitclaim deed.
trustee’s deed.
All of the following title defects are normally covered by an attorney’s title opinion, EXCEPT
Recorded mortgage liens
Recorded judgments
Recorded forgeries
Property tax liens
A developer wants to list multiple lots for sale in new subdivision with a newly licensed provisional broker. The provisional broker should do all the following, EXCEPT?
Ensure that the developer has obtained preliminary approval before offering the lots for sale.
Ensure that the planning board grants final approval before closing the sale of lots in the subdivision.
Ensure that the builder has created the state mandated road maintenance agreement.
Ensure that a buyer does not close until the 5-day period has expired from the date final . approval is granted to the subdivision.
Which of the following is required for the sale of properties covered by the Interstate Land Sales Full Disclosure Act?
An on-site property inspection by a prospective Purchaser
Cash transactions with no financing
Completion of roads and utilities prior to sale of any lots
Each purchaser must receive a “statement of record”
Which of the following statements regarding planning and zoning ordinances in North Carolina is UNTRUE?
I. Planning and zoning ordinances are enforced primarily by government entities.
II. If there is a conflict between zoning ordinances and private restrictive covenants, the zoning ordinances will always take precedence.
I Only
II Only
Both I and II
Neither I nor II
Building codes are an example of a public land use control in the state of North Carolina. Which of the following statements best describes the function of a Certificate of Occupancy?Â
The document that certifies the property ready for human habitation
A certification that the premises are deemed safe to occupyÂ
Proof that best construction practices were followed during buildingÂ
Verification that the permitting and approval process were followed according to the building codes.
Aiden wants to build an 5 story office building on vacant lot that is zoned for commercial purposes and meets the zoning rules. The property has a deed restriction that does not permit building higher than 4 stories. Which of the following statements is correct?
Aiden must obtain a variance from the city to build the 5 story building.
Aiden must have the property rezoned by the city to build the 5 story building.
Aiden would receive a permit from the city to build the 5 story building.
Aiden can remove the restriction by filing a suit to quiet title with the county court.
A local municipality requires all parking lots to be surrounded by a sidewalk and certain trees and other landscaping. An owner of a commercial building needs to expand the parking lot to allow for more spaces due to high demand of tenants. The owner would seek a/an:
rezoning.
variance.
special use permit.
easement.
Which of the following would require a contract to be in writing in order to be enforceable?
Connor Act
Marketable Title Act
Good Settlement Act
Statute of Frauds
Damien purchases a 2 acre lot in Hillsborough, NC. His neighbor, Bob, owns a 5 acre lot that borders Damien's property along the side and rear boundaries. Damien discovers that Bob is a hermit and never leaves the house, so he builds a fence, taking 2 acres from Bob's lot. Which of the following statements is TRUE?
Bob is protected from an adverse possession claim because he is not aware that Damien took his land.
Damien is entitled to Bob's entire property assuming all of the other requirements for adverse possession have been met.
Damien is not permitted to take Bob's property as an adverse possession claim can only be made when someone is tricked into believing that they own the land.
Damien is entitled to the portion of land that has been adversely taken assuming all . of the other requirements for adverse possession have been met.
