Real Estate Exam Questions and Answers: NC Laws and Regulations, Exams of Real Estate Management

Download Real Estate Exam Questions and Answers: NC Laws and Regulations and more Exams Real Estate Management in PDF only on Docsity! Superior NC Real Estate Important Final Exam questions and answers RESPA - -Real Estate Settlement Procedures Act: applies ONLY to 1-4 family residential transactions, transactions involving a "federally related" mortgage (conventional, FHA, VA) Which party's signature is required on a deed of trust? A. the trustee B. the beneficiary C. the trustor(s) D. the grantee(s) - C. the trustor(s) The trustor is the borrower in a lending situation using a trust deed. The borrower is giving the lender security or collateral interests in the property. Because those rights and interests belong to the borrower and they are surrendering them, only the trustor (or borrower) must sign the trust deed. Under which of the following types of mortgage loans would a buyer have to produce a certificate of reasonable value? A. VA Guaranteed Loan B.VA Insured Loan C.FHA Insured Loan D.Conventional Loan - A. VA Guaranteed Loan The certificate of reasonable value or CRV is the name for the appraisal in a VA loan. VA loans are guaranteed, FHA loans are insured. The appraisal in an FHA loan is called a Conditional Committment. Encapsulation refers to: - The sealing away of friable asbestos Radon becomes a material fact in North Carolina: A. Only in regard to properties located in the western part of the state B. In all residential real estate transactions C. Only when the presence of radon can be sensed by smell D. When the level of radon is 4.0 picocuries or higher - D. When the level of radon is 4.0 picocuries or higher. The major difference between an installment land contract and a purchase money mortgage is: A.Seller financing only exists in purchase money mortgages. B.The buyer receives legal title and the seller receives equitable title. C.The time in which delivery of the deed is made. D.Installment carryback is also known as seller carryback financing. - A purchase money mortgage, seller financing or a seller carryback occurs when the seller is transferring title to a buyer at closing and the seller is acting as the lender. Typically the buyer would execute a promissory note and deed of trust for the seller. An installment land contract or a contract for deed is a situation where the seller remains in title to the property and the borrower is in the process of acquiring it by making payments to the seller and title transfers with final payment. A buyer is to assume an existing loan of $80,000 at 9.5% with the approval of the lender. The interest on the loan, which is paid in arrears, would appear on the closing statement as: A.A single entry; debit to the seller B.A single entry: credit to the buyer C.A double entry: debit to the seller, credit to the buyer D. A double entry: credit to the seller, debit to the buyer - C. a double entry: debit to the seller, credit to the buyer. When a loan is assumed there is no new loan being established. The buyer's obligation will begin with the very next payment. Since interest is paid in arrears that next payment paid by the buyer will include interest for the month in which they acquired the property. The seller will have to home without qualifying and having a mortgage payment. Lender rules differ as to the age of the homeowner and the amount of equity required to obtain this type of loan. You are on a listing appointment and the sellers tell you they would like to net $135,000 from the sale of their home. You estimate they will have to pay $950 in miscellaneous closing costs, and you will charge them a 6.5% commission to sell the property. They also have a loan payoff of $53,500. What must the property sell for to ensure they receive their desired net? A. $201,764.25 B. $145,401.06 C.$201,604.27 D.202,620.32 - D. $202,620.32 The seller must net $135,000 + $950 in costs + $53,500 payoff for a total of $189,450. That amount represents 93.5% (100%-6.5%). $189,450÷.935 (93.5%) = $202,620.32. When a landlord is responsible for the payment of taxes, insurance and mortgage payments, and the tenant is required to only pay rent, the lease is a(n): A. Net Lease B. Gross Lease C. Ground Lease D. Index Lease - B. Gross Lease In a gross lease the tenant makes a lump sum payment for the amount of the rent and the landlord is responsible for these expenses. The tenant pays nothing extra. An attorney of fact is best described as A. a fiduciary to his principal B. an agent C. an attorney D. a client - A. a fiduciary to his principal Which of the following is not essential to a general warranty deed for real estate? A. signature of buyer B. Signature of seller C. Covenant of seisin D. a legal description of real estate - A. Signature of buyer The initial maximum deposit in a NC trust account by a broker who is depositing their own funds is: A. $50, or whatever the financial institution requires B. $100, or whatever the financial institution requires C. $500, or whatever the financial institution requires D. $1,000, or whatever the financial institution requires - B. $100 or whatever the financial institution requires When is the developer of a time share project required to deliver the public offering statement to the purchaser? A. within a reasonable time B. Prior to day of closing C. upon initial contact with the buyer D. Prior to buyers submission of an offer - D. prior to buyers submission of an offer What is an executory contract? A. one that goes to closing B. fully executed contract C. Contract with outstanding terms D. Contract signed by only one party - C. A contract with outstanding terms -Remember an executed contract means all terms and conditions have been met, executory means it has not been fully completed yet How long do you have to notify the NCREC of a conviction of a crime? - 60 days 10 days to report address or name changes An unlicensed assistant may not A. Search public records B. place signs in yard C. schedule appointments D. assist other in the sale or lease - D. assist others in the sale of lease Under the federal fair housing act of 1968, it is permissible to A. Alter terms of a loan for a minority B. Refuse to give a loan because he has poor credit C. Advertise property for sale to only a special group D. Tell an individual an apartment has been rented when it has not - B. Refuse to give a loan because he has poor credit FHA FRESHCORN Familial status, Race, Equal, Sex, Handicapped, C, Opportunity, Religion, Nationality The agency of the government that administers fair housing laws is - HUD CFPB Regulate the TILA (truth in lending APR) and RESPA (Real estate settlement procedures loan types) The process of changing real property to personal property is A. Intention B. Conversion