Superior Real Estate School Practice Exam

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• In a case of eminent domain, does the city need to compensate tenants of an apartment complex being condemned?
• If a buyer terminates a contract after their loan application is denied, what happens to the earnest money?
• A buyer-client instructs their agent to show only properties where the seller pays the buyer agent's commission. What must the agent do to comply with North Carolina Real Estate Commission Rules?
• What legal concept allows a property owner to transfer rights of access to land even when sold?
• Which situation accurately depicts a lease termination upon government condemnation?
• Which of the following is not a requirement for obtaining a NC Real Estate license?
• What happens to the ownership of a joint tenancy with right of survivorship when one co-tenant dies?
• When can a buyer optionally withdraw an offer before it is accepted?
• What is the capital gains exclusion limit for the sale of a principal residence?
• What is a key characteristic of eminent domain?
• Which statement is true regarding freehold and nonfreehold estates?
• Who is liable when a licensee acts improperly on behalf of a client?
• Which of the following is NOT considered exempt from licensure in real estate?
• For a real estate transaction, which document typically provides the buyer with a comprehensive overview of the property title?
• The enforcement of zoning requirements occurs by:
• What type of contract allows a buyer to hold an offer to sell open for a set period?
• A rectangular parcel of land measures 400 feet by 600 feet. If divided into two equal lots by a creek, what is the approximate acreage of each parcel?
• In what scenario can a seller still be liable for commission?
• What is the excise tax on a house that sells for $268,210 with a $25,000 down payment and a $50,000 second mortgage?
• To qualify for the owner-occupied capital gains exclusion, how long must the owner occupy the home before the sale?
• What does the defeasance clause in a deed of trust require the trustee to execute in certain situations?
• When appraising real estate, which of the following is NOT considered in the determination of value?
• What does the North Carolina Real Estate Commission (NCREC) require concerning real estate forms?
• Deed restrictions can be created by all of the following, EXCEPT:
• What is true regarding Jack, a licensed broker in Illinois, wanting to assist a buyer in Charlotte, NC?
• Which statement is TRUE regarding the assignment of contracts?
• In North Carolina, who is primarily responsible for ensuring compliance with zoning laws?
• What is the primary legal implication of a unilateral contract?
• What type of estate does a grantor retain if they have the right to reclaim property if conditions are not met?
• How will a licensee with a written contract stating they will not be treated like an employee be classified by the IRS?
• If a co-owner of a property dies intestate, how does the surviving owner retain ownership?
• In the sales comparison approach, how is the subject property's value inferred with the given comparable property information?
• What term describes the reserved parking spaces and garages in a NC condominium project?
• Which of the following is generally considered to be an incurable form of depreciation?
• What must a sole proprietor independent broker NOT do to avoid being required to be a broker-in-charge?
• Which of the following best describes a "grantee" in a real estate transaction?
• How long does a broker have to deliver an offer received from a buyer to their seller/client?
• What is the maximum security deposit Frank may charge for a one-year rental agreement for his house renting at $1,500 per month?
• In a lease agreement for a barber shop, who is typically responsible for making repairs to the interior of the building?
• Which statement about the North Carolina Working With Real Estate Agents brochure is NOT true?
• Who holds the responsibility if a listing agent does not communicate a known issue with the property?
• If a buyer defaults on a contract, which remedy is NOT usually available to the seller?
• Who administers and enforces subdivision regulations in North Carolina?
• In the context of real estate transactions, what refers to the period in which negotiations can change?
• When does an Offer to Purchase and Contract become valid?
• Which statement about commission rules is NOT correct?
• Can a real estate licensee renew an inactive license?
• Regarding real estate commissions, which statement is accurate?
• What happens to the contract once Jones is notified of the seller's acceptance?
• Who is held responsible for nondisclosure of a major roofing leak in a listing when the seller indicated "no representation" on the disclosure statement?
• Which of the following is an essential element of a valid North Carolina deed?
• In a real estate purchase agreement, who typically has to go through with the terms as written?
• What aspect is crucial for a valid purchase contract?
• Which document is covered by the NC Statute of Frauds?
• What type of restriction has a developer created by requiring a certain standard home size in a subdivision?
• What is an easement in real estate?
• In Karen's situation regarding her property, what does she possess?
• What is the role of the North Carolina Real Estate Commission regarding fees and commissions?
• Which of the following actions is a property manager legally permitted to perform?
• When must a licensee have an Exclusive Right to Sell Listing Agreement signed?
• What is the status of the contract after Barney dies three days prior to closing?
• Which of the following is NOT a physical characteristic of land?
• Under what circumstance must an applicant refile for a NC Real Estate license?
• When must a provisional broker pay their renewal fee to remain active?
• When does title to real estate pass from one party to another?
• How long does a real estate licensee have to notify NCREC of a change in address?
• What is true regarding an inactive real estate licensee assisting a friend in a transaction?
• How long does a broker or provisional broker have to report a conviction of DWI?
• What is a common liability of the buyer in a purchase contract?
• Which of the following factors can affect the economic value of a property?
• Designated agency in North Carolina is considered:
• What is NOT a function of a property manager?
• How much money will Bill and Betty pay in fees when securing their new home loan?
• Which agreement is NOT typically subject to the Statute of Frauds?
• Which aspect is NOT regulated by zoning ordinances under the government's police power?
• What is required when a provisional broker terminates their relationship with a firm?
• Which of the following is considered real property?
• What requirement must be fulfilled to obtain homeowners insurance and qualify as an "insured" under the policy?
• What is the status of a sales contract entered into by an intoxicated individual?
• What characteristic of land underlies the doctrine of specific performance?
• In a life estate scenario, what does a grandson inherit when the life tenant dies?
• Designated agency can be practiced between which parties?
• What is true about a corporation selling its properties through salaried employees?
• Is Judy violating NC Licensing Law by showing her parents' home?
• What must a licensee disclose regarding road disclosures in North Carolina?
• If the broker-in-charge acts as one of the designated agents on a North Carolina in-house transaction, who can be appointed as a designated agent for the other party?
• What is the role of zoning ordinances?
• What type of ownership results when land is required to always be used for recreational purposes?
• What requirement does a buyer's agent have in reference to street disclosures?
• What must Jack, a licensee, do before making an offer on a property he has listed?
• Which factor is generally considered to have the greatest impact on a property's value?
• Which entity does NOT need a firm license in North Carolina?
• What is a requirement of the North Carolina Residential Property Disclosure Act?
• In real estate, what does the term 'escrow' refer to?
• In a typical seller's market, which of the following is most likely to decline?
• Which statement best describes the role of the NCREC in relation to real estate contracts?
• Why is earnest money important in a sales contract?
• What action can be taken if a condominium owner fails to pay association dues?
• What was the percent of profit that Bill made from selling the lots he purchased?
• What must tenants living in foreclosed residential properties do, according to federal law?
• Assuming annual real estate taxes amount to $1,800 and have been paid in advance by the seller, which of the following is correct for a closing set for September 15?
• When a buyer sues for specific performance after the seller backs out, what is the buyer seeking?
• Which statement about brokers-in-charge is incorrect?
• What is one requirement for a Broker Sallie to become a broker-in-charge?
• Which type of agreement is subject to the Statute of Frauds?
• In the cost approach to value, the appraiser primarily uses which of the following?
• What determines how much rent a landlord can charge?
• Which statement regarding the transfer and retention of risk in property management is incorrect?
• Aunt Fran sells property with a conventional life estate reserved. Who is the life tenant?
• Which type of lien typically has first priority over others?
• What is the maximum time frame a BIC has to complete the broker-in-charge course after becoming a BIC?
• What is the status of the retained lot when one acre is sold but an appurtenant easement is retained?
• What can the buyer and seller negotiate after contract formation under North Carolina law?
• A posted reward for returning a missing dog is an example of what type of contract?
• Which type of estate cannot be passed down by inheritance?
• Under the NC Condominium Act, what is incorrect regarding a unit owner's rights?
• When must a real estate broker disclose their agency status to the listing licensee?
• Under a contract for deed, who holds the title to the property?
• If a seller sold his property for $97,000 and made a 321.74% profit, what was the purchase price?
• What is a crucial aspect for brokers providing services in North Carolina?
• Which situation exemplifies dual agency?
• Under which doctrine can the harmed party in a real estate contract request a judge to enforce contract terms?
• What is the primary role of the North Carolina Real Estate Commission (NCREC)?
• What is the primary role of an appraiser in the property valuation process?
• When can a licensee act as the Broker-in-Charge of more than one firm?
• What condition can make a contract voidable from the seller's perspective?
• Who is exempt from providing an RPOADS and MOG?
• Under North Carolina law, which statement about designated agency is correct?
• If a broker changes their broker affiliation, how soon must they notify NCREC?
• All of the following statements are correct regarding the NCREC, EXCEPT:
• What happens to a contract when the home involved burns down?
• Which statement about the post licensing requirement for a provisional broker is incorrect?
• What must a corporation selling its properties ensure if they use unlicensed employees?
• How is the option contract between Sam and the seller best described?
• What happens if a party holds life estate and the fee simple estate simultaneously?
• When must an owner designate a mechanic's lien agent according to North Carolina statute?
• Regarding title recordation, which of the following statement(s) is true?
• How do Vonda Lee and William likely hold title to their house purchased in 2003?
• What is the penalty for a provisional broker who does not fulfill post licensing requirements on time?
• How long does a provisional broker have to activate their license after obtaining it?
• How many members of the North Carolina Real Estate Commission must have a license?
• The recording of a deed:
• What is one of the key roles of property management?
• What is the term for land increase along a river or stream?
• What mandates that the North Carolina listing agreement and buyer agency agreement must be in writing?
• What is the earning potential for an agent with a 60% share of a 10% commission on a property sold at $200 per foot?
• Under which listing agreement does the seller lose their right to compete for commission?
• After a deed states that ownership lasts as long as a building is not destroyed, what kind of interest does the original grantor retain?
• Why is the signature of a wife needed on a deed during a property sale?
• How long does a broker have to renew their license before additional education is required?
• Who is the mortgagor in a mortgage agreement?
• What happens to the original joint tenants' ownership after one owner sells his interest to a friend?
• Is it legal for an unlicensed assistant to solicit listings for a broker?
• When must earnest money deposits paid via personal check be deposited in an escrow account?
• An HO-4 policy typically provides coverage for which of the following?
• Which of the following statements is true regarding breaches of sales contracts?
• What is a common consequence of breaching a sales contract?
• What happens to Jason's rights regarding the adjacent navigable river when he sells his property?
• What is required from a buyer's agent when presenting an offer?
• When should a buyer use the NCBA/NCAR Contingent Sale Addendum?
• What does the recording of a deed accomplish?
• How much commission does an agent earn from selling a parcel of land 80 feet wide and 200 feet deep?
• Which statement about the North Carolina Working With Real Estate Agents brochure is false?
• Who must receive the North Carolina Working With Real Estate Agents brochure?
• What type of property ownership allows for two or more individuals to share rights while surviving owners automatically gain ownership at the death of a co-owner?
• When a seller accepts a buyer's offer, at what point is the buyer able to withdraw the offer?
• If Harry, a joint tenant, conveys his interest to Will, what happens to Joe and Moe’s ownership status?
• Which policy generally covers liability for injuries occurring on someone else's property?
• In relation to property classification, what does annexation refer to?
• What term describes the increase of land due to natural sediment accumulation?
• The doctrine of "constructive eviction" requires the lessor to maintain the property in a "fit and habitable" condition. Which areas of the property does this cover?
• An unlicensed assistant may perform all of the following activities, EXCEPT:
• Who represents the servient parcel when an easement exists?
• Which statement is true regarding the appointment of the NC Real Estate Commission members?
• When fencing materials are used to enclose a yard, what process converts them to real estate?
• Which document typically outlines real estate covenants and restrictions applicable to a subdivision?
• An executory contract is defined as one in which:
• If a buyer is harmed due to a malfunctioning water heater that the listing agent failed to disclose, who would be at fault?
• If a licensee fails to pay their renewal fee by June 30, what is the grace period for reinstatement without added educational requirements?
• According to General Statute 93A-2, which of the following would not be considered valuable consideration?
• When a homeowner dies leaving a life estate, who typically retains rights to the property until the estate's condition is met?
• A seller informs the listing agent about asbestos in the heating closet area. What should the listing agent communicate to prospective buyers?
• Which of the following individuals does not need a real estate license to sell property?
• In a joint tenancy, what occurs automatically when one co-owner passes away?
• Which of the following statements regarding estates is true?
• When should a buyer’s agent disclose agency status to the seller?
• Which of the following statements is accurate regarding road maintenance in North Carolina?
• If a building is valued at $215,000 and contains four apartments renting for $470 each per month with a net operating income of 65%, what is the capitalization rate?
• Which agent violated the Law of Agency when negotiating the offer?
• If the government exercises eminent domain, what must they do for the current property occupant?
• What is the best term for the borrower utilizing a trust deed?
• What is the term for a land zoning that allows different uses too close together?
• Which of the following describes the process of land being added due to natural changes along non-navigable streams?
• When a developer requires homes in a subdivision to adhere to specific square footage limitations, what legal method can this be enforced?