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A real estate broker has assisted an investor with the purchase of a number of commercial properties. The investor will be out of the country for part of the year and asks the broker to manage all aspects of those properties during that time, including advertising and leasing. The real estate broker will be considered a(n):

A.

special agent

B.

general agent

C.

universal agent

D.

ostensible agent

A real estate licensee's advertisement for a house includes only the following phrase about financing: "Assume the owner's original loan with only a $1,000 down payment!" What is wrong with this advertisement?

A.

It does not also include the loan's annual percentage rate and other financing terms.

B.

It does not also include the original balance on the loan.

C.

It does not provide the brokerage firm's name as licensed.

D.

Nothing, so long as it is the real estate licensee's own property.

A seller tells their listing broker that the basement leaks in heavy rains but marks "No Representation" to the relevant question on the North Carolina Real Estate Commission's Residential Property and Owners' Association Disclosure Statement (RPOADS). The listing broker must:

A.

complete a new property disclosure statement themself.

B.

inform the local building commission.

C.

inform the buyer that the basement leaks during heavy rains.

D.

protect the interests of their client and keep the information confidential.

Under the provisions of the North Carolina Subdivision Streets Disclosure Law, a subdivision developer must give a prospective buyer a disclosure statement that indicates:

A.

whether the property's frontage street is public or private.

B.

the anticipated cost of assessments for public or private streets.

C.

that the developer is responsible for maintaining private streets.

D.

whether the property's frontage street is subject to flooding.

A comparable property sold for $300,000. It has a finished basement, while the subject property does not. The finished basement contributes $10,000 to value. What is the adjusted value of the comparable property?

A.

$290,000

B.

$300,000

C.

$310,000

D.

The price of the comparable property is never adjusted.

Which statement about a mortgagee's title insurance policy is TRUE?

A.

The amount paid on a claim equals the original loan amount.

B.

Coverage never expires as long as the buyer owns the property.

C.

The policy premium is usually added to the monthly mortgage amount.

D.

It protects the lender against defects in the title.

What is the formula for calculating capital gain when a principal residence is sold?

A.

Amount Realized - Adjusted Basis

B.

Amount Realized + Adjusted Basis

C.

Adjusted Basis / Amount Realized

D.

Adjusted Basis - Amount Realized

Under the provisions of a property management agreement, a property manager has a legal obligation to promote and protect whose interests?

A.

The property owner

B.

The tenants

C.

The property owner and the tenants

D.

The public

Which of the following entities would participate in the primary market for mortgage lending?

A.

Commercial bank

B.

Federal Home Loan Mortgage Corporation

C.

Federal Housing Administration

D.

Federal National Mortgage Association

When submitting an offer, a buyer handed their broker an earnest money deposit in cash. To comply with the North Carolina Real Estate Commission Rules, what must the broker do?

A.

Not accept the cash and ask the buyer to write a check instead

B.

Ensure the cash is locked in a safe place until the offer is accepted

C.

Deposit the cash into the brokerage trust account within three banking days of receipt

D.

Turn the money over to the listing broker within 24 hours of receipt