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WorksheetsNC Test Prep Unit XIII - Property Valuation & Appraisal (N)
Total questions: 52
Worksheet time: 26mins
All of the following statements by a buyer to a seller's agent would exemplify "first substantial contact" except
how long the buyer has been living in his present house.
what the buyer wants to pay.
what type of property the buyer needs.
how much the buyer will have to borrow.
A licensee of a firm cannot be a designated agent representing the buyer in a transaction if
the agent has already received confidential information from the seller in the transaction.
the agent has represented a seller in earlier transactions.
the agent has already received approval to be a dual agent.
All of the above.
What approvals are necessary, if any, to practice designated agency?
Verbal consent of both parties, followed by written consent prior to closing.
Prior express approval of both principals obtained upon the formation of the relationship and reduced to writing as required.
Prior written approval of the buyer.
No specific approvals are necessary if the firm has a written policy authorizing designated agency.
In North Carolina, when may a broker represent both parties in a real estate transaction?
Never.
When the broker has obtained prior written consent of both parties.
Only when the broker is acting as a designated agent in a firm.
Only when the principal broker has agreed to the transaction.
An agent in a firm cannot be a designated agent representing one principal's interest if
the agent has already received confidential information from the other principal party.
the buyer refuses to authorize dual agency.
the agent is a broker-in-charge and supervises the provisional broker representing the other party in the transaction.
all of the above.
Dual agency in real estate transactions:
is illegal.
may not be practiced without consent of the customer in the transaction.
may not be practiced without consent of the seller.
may not be practiced without written consent of both parties to the transaction.
During telephone discussions with a buyer, a seller's agent has reached the point where the buyer is interested in making an offer. To comply with the NCREC rule on agency disclosure, the agent must now provide:
a verbal disclosure.
a verbal disclosure followed by a written disclosure mailed within three days.
a verbal disclosure followed by a confirming disclosure completed within seven days.
a written notification of dual agency.
A broker-in-charge may not represent a party in a dual agency transaction:
under any circumstances.
if a provisional broker under his or her supervision represents the other party.
even if both principal parties give written authorization.
without the prior verbal consent of the principals.
In North Carolina, a designated agent is:
an agent designated to represent either the buyer or seller in a firm's dual agency situation.
a subagent to the seller.
a cooperating agent.
an agent representing a buyer or a seller within the same firm.
At what point must a North Carolina seller's agent disclose his agency relationship to a buyer in writing?
Immediately upon first contact.
Upon first substantial contact.
Prior to showing any properties.
Prior to completing an offer.
The North Carolina Uniform Building Code:
standardizes construction styles for residential properties statewide.
provides appraisers with a ready-reference for valuing different methods of construction.
In making representations regarding the living area of a listed residence, licensees
are required to state the square footage based on their measurement.
are required to identify the square footage of all properties, including out-buildings.
are not required to be accurate since they are not appraisers.
are not required to report square footage, but are advised to be accurate if they do so.
The North Carolina excise tax on the purchase price of property conveyances is
$.50 per each $100 or fractional part thereof, paid by the seller.
$.50 per each $100 or fractional part thereof, paid by the buyer.
$1.00 per each $500 or fractional part thereof, paid by the seller.
$1.00 per each $500 or fractional part thereof, paid by the buyer.
According to the NC Fair Housing Act, a homeseller who does not employ an agent
may discriminate in the selection of a buyer.
may not discriminate in the sale of his property.
may discriminate in selecting a buyer, but not in any advertising.
none of the above.
A homeowner in a college town wants to rent a room in her principal residence to a college student. Which provision of the NC Fair Housing Act applies?
The homeowner is exempt.
The homeowner is exempt, provided she does not use an agent to locate the tenant.
The homeowner may not discriminate in the selection of a tenant.
The homeowner may only discriminate against handicapped people.
The time limit for filing a complaint to remedy an alleged violation of the NC Fair Housing Act is
60 days following the alleged violation.
90 days following the alleged discriminatory violation.
120 days following the alleged discriminatory violation.
One year following the alleged discriminatory violation.
A violation of federal fair housing laws is also a violation of
the North Carolina Residential Agreements Act of 1988.
the North Carolina Equal Credit Opportunity Act of 1977.
the North Carolina Fair Housing Act of 1983
the North Carolina Equal Opportunity Act of 1995.
North Carolina is considered to be a
lien theory state where borrowers take legal title to the property.
title theory state where borrowers take legal title to the property.
lien theory state where lenders take legal title to the property.
title theory state where trustee’s take legal title to the property.
A North Carolina resident qualifies for more than the standard homestead tax exclusion of $35,000 if he or she
is 65 years of age or totally disabled.
has an income of $25,000 or greater.
is 55 years of age or older.
owns subsidized housing for the poor.
Which of the following is not exempt from real property taxation in North Carolina?
An FDIC-insured banking institution.
A protected natural area.
A recycling center.
A public park.
Which of the following series of dates represents the taxing cycle for real properties in North Carolina?
Taxes are levied in January; due and payable in April, and delinquent on August 6.
Taxes are levied, due, and payable in January, and delinquent on February 6.
Taxes are levied in July; due and payable in September, and delinquent on January 6.
Taxes are levied, due and payable in March, and delinquent on September 6.
How often must the North Carolina Coastal Area Management Act (CAMA) be reviewed?
every two years.
every four years.
every six years.
every eight years.
The purpose of the North Carolina Coastal Area Management Act (CAMA) is to
protect and preserve the state's coastal and estuary regions.
minimize hurricane damage to shoreline properties.
control fishing practices in coastal areas.
promote sustainable agriculture in arable coastal regions.
What right of rescission does the North Carolina Condominium Act allow the initial purchaser of a condominium?
3 days' right of rescission following the execution of a contract.
7 days' right of rescission following the execution of a contract.
10 days' right of rescission following the execution of a contract.
No right of rescission.
In North Carolina, how long does a construction contractor have to file a mechanic's lien after last supplying material or labor?
60 days.
90 days.
120 days.
1 year.
Under the provisions of the North Carolina Condominium Act, re-sellers of condominium units must
give buyer prospects a copy of the public offering statement.
give buyer prospects a statement of monthly fees and assessments.
give buyer prospects a copy of the public offering statement as well as monthly fees and expenses.
give other unit owners a right of first refusal.
According to the North Carolina Condominium Act, the initial purchaser of a condominium
may not be related to the condominium developer.
may not be a prior resident of the property.
must receive a public offering statement prior to executing a contract.
none of the above.
Which of the following is not used in North Carolina to legally describe a parcel of real property?
Metes and bounds descriptions.
References to a recorded map.
Government Survey System.
Legal descriptions contained in public records.
In North Carolina, the prescriptive period for adverse possession of private property without color of title is
fifteen years.
seventeen years.
twenty years.
thirty years.
In North Carolina, the use of trust deeds with a power of sale clause enables which type of foreclosure to occur?
Strict foreclosure.
Non-judicial foreclosure.
Judicial foreclosure.
All of the above.
According to the NC Tenant Deposit Security Act, deposits may be used for
any purpose.
any purpose, provided the tenant has in fact defaulted.
expenses specifically relating to a tenancy, if justified.
expenses relating to the apartment building where the tenant resides.
The rights, obligations and remedies under a rental agreement for a dwelling unit within North Carolina are governed by
the NC Tenant Security Deposit Act.
the Residential Rental Agreements article of the NC Landlord and Tenant statute.
the NC Vacation Rental Act.
none of the above.
In North Carolina, a lease of mineral rights
must be in writing and recorded to be valid.
is void if its term exceeds three years.
is enforceable if its term is less than three years.
is enforceable provided the tenant exercises the mining option.
Licensees in North Carolina who are involved in the practice of leasing or managing vacation properties are governed by the provisions of the North Carolina
Tenant Security Deposit Act.
Time Share Act.
Environmental Protection Act
Vacation Rental Act
Under the provisions of the NC Residential Rental Agreements Act, tenants are responsible for
repairing common area where damage is due to ordinary wear and tear.
making repairs that are needed due to ordinary wear and tear.
structural and cosmetic repairs, provided they are required during the lease term.
damages caused to the interior of an apartment that is above and beyond wear and tear.
If a North Carolina tenant refuses to pay rent for an apartment and continues to occupy the premises, the landlord
has grounds to evict the tenant.
landlord may not evict the tenant.
must wait 60 days to pursue a remedy.
none of the above.
According to the NC Tenant Deposit Security Act, the maximum deposit a landlord may charge is an amount equal to
one week's rent for a week-to-week rental.
one month's rent for a month-to-month rental.
two month's rent for rentals exceeding month-to-month.
one month's rent for all tenancies.
In North Carolina, land contracts and installment sales
must be in writing to be valid.
are enforceable.
are enforceable if the payment term is less than three years.
are enforceable provided the purchaser can procure financing.
The North Carolina Vacation Rental Act applies to
occupants of vacation properties.
landlords and brokers of vacation properties.
In North Carolina, if a salaried employee of a property manager performs administrative duties on behalf of the property owner, the employee
must be licensed as a broker.
must be licensed as a broker or provisional broker.
need not be licensed.
is violating North Carolina license laws.
To be valid, a North Carolina vacation rental agreement
must be in writing.
must be acknowledged by a signature or acceptance of a deposit.
must describe how monies are to be handled.
all of the above.
According to the NC Statute of Frauds, oral leases are void if they
are for one year or more.
have terms in excess of two years.
exceed three years.
are not recorded.
Bob wants to work for his brother-in-law promoting and selling a time share project the brother-in-law is developing. What must Bob do to comply with state licensing regulations to sell time shares?
Pass the real estate time share exam.
Obtain a time share developer's license.
Obtain a real estate license and a securities license before engaging in any sales.
Obtain a certificate of occupancy for the time share project.
Bob's brother-in-law, Ted, a time share developer, hires Bob to sell time share units. Bob is properly licensed, but Ted could be committing a Class 1 felony if he lets Bob begin selling before
designating Bob as project broker.
registering the time share project with the NC Real Estate Commission.
paying a fee to register Bob as an agent.
providing Bob with certified training in the time share sales regulations.
Who is responsible for providing a time share purchaser with a public offering statement?
The project broker.
The time share developer.
The on-site marketing administrator.
The registrar.
Who is responsible for keeping accurate records of trust monies, time share sales and rentals, and registration of a time share project?
The time share broker.
The time share developer.
The project broker.
The time share registrar.
In North Carolina, when an owner in a joint tenancy dies, in the absence of express provisions for descent, his estate passes to
the surviving joint tenant.
the state.
the heirs of the deceased.
none of the above.
One of the purposes of the North Carolina Marketable Title Act is to
promote the marketability and transferability of North Carolina real estate.
establish rules as to how NC properties may be conveyed.
protect the interests of parties wishing to cloud title.
invalidate claims against one's title to real estate.
Seller Brandy has an agency agreement with broker Tabitha that itemizes authorized activities in exchange for commensurate compensation. What type of agency agreement does Brandy have?
An open agency agreement
A full service agency agreement
A limited service agency agreement
A co-agency agreement
Which statement is true regarding protection agreements?
They are used in FSBO transactions to ensure the property “appraises out.”
The agreements do not create an agency relationship.
They are typically only used in transactions where the property is listed for more than one million dollars.
What is the purpose of Agriculture Rural Development Loans?
To stimulate settlement and development of rural agricultural jurisdictions.
To help low-income agricultural homeowners with affordable financing.
To subsidize rural small business owners’ financing needs.
To prevent younger people from moving to cities.
According to the North Carolina Machinery Act, how often do all counties have to reappraise property?
Every 4 years
Every 8 years
Every 12 years
Every 20 years
