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NC Post-Licensing 302 - Unit Test Questions with answers
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NC Post-Licensing 302 - Unit Test Questions with answers
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NC Post-Licensing 302 - Unit TestQuestions with answers
In a real estate transaction, which of the following is an example of consideration? - ANSWER:
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➡ The seller's promise to sell
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Your automatic check writer wrote a check for $51.50, but your printer ran out of toner, so you
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had to fill in the handwritten line. In a hurry, you accidentally wrote, "Fifty-one dollars and
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no/100 cents." Which amount takes priority? - ANSWER: ➡ The handwritten number
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Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of these
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actions changes the contract from executory to executed? - ANSWER: ➡ Dierks' lender funded
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the loan, and closing took place
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_______ is an example of circumstances that are beyond the buyers' control, meaning they can't
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practically do what they've agreed to do, and the offer terminates. - ANSWER: ➡ Destruction
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of property
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If a contract is for an illegal purpose, it's ______ - ANSWER: ➡ Void
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Which of the following is NOT a valid reason for an offer termination in North Carolina? -
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ANSWER: ➡ Improper forms
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Which offer would be the most appealing to a seller? - ANSWER: ➡ It depends on the seller's
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needs and motivations
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Kirk and his cousin Dewey decided to buy a vacation home. They entered into a contract with
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the seller, Crystal. Before finalizing the sale, Dewey wanted out, but he doesn't want to let his
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cousin down. So instead of pulling out altogether, Dewey convinced his son to replace him in
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the purchase contract. Kirk and Crystal agreed to the substitution, and Dewey was released
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,from all his obligations under the contract. Dewey's son is now the contracting party. What's
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this an example of? - ANSWER: ➡ Novation
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What type of language should be used to write contracts? - ANSWER: ➡ Plain language
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When does offer and acceptance occur? - ANSWER: ➡ When both parties sign a contract with
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the full understanding of the terms.
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Sylvan, the seller, and Eric, the buyer, have signed an option agreement, which is an offer to
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purchase a specific piece of real estate without the obligation to buy it. Until Eric exercises his
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option to buy, only Sylvan is bound by the option agreement; he may not sell the property to
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anyone else during the option period. What type of contract is this? - ANSWER: ➡ Unilateral
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Three of these statements about interpreting contracts are true, and one is not. Which
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statement is FALSE? - ANSWER: ➡ A handwritten insertion can be canceled out by typing over
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it.
g
What is wrong with this statement: "Handwritten information on a contract is not legally
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binding. All insertions must be typed."? - ANSWER: ➡ Insertions do not have to be typed to be
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legally binding.
g g
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping
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the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a
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commission. What type of agreement do Desmond and the Harpers have? - ANSWER: ➡
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Bilateral
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The Nettles have accepted the Briars' purchase offer, and both parties have signed the sales
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contract. The funds, and the title, should transfer in a matter of days, but otherwise the all
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elements and terms of the contract have been met. What type of contract do the Nettles and the
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Briars have? - ANSWER: ➡ Executory
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Ruthie is explaining the termination option to her buyer client. How would she explain that
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"time is of the essence" is for the discharge under operation of law option? - ANSWER: ➡ "This
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,means that if the seller doesn't decide by the deadline, the buyer is no longer held to the
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contract"
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Why do you think that handwritten changes take priority over typed changes? - ANSWER: ➡
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It's less likely to be done inadvertently
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Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected
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that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and
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they added their signatures. Which of the following statements is correct? - ANSWER: ➡
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Breanna accepted the offer Kathy made
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Rex needs to handle some money he acquired during an "unsavory" business deal. He agrees to
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sign his boat over to his colleague, Ben, if Ben can launder the money and return it to Rex as part
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of a legal business dealing. What kind of contract do Rex and Ben have? - ANSWER: ➡ Void
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Which of the following is a legitimate reason to counter an offer? - ANSWER: ➡ Price
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When a seller's agent receives a written offer from a prospective buyer, how must it be
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handled? - ANSWER: ➡ It must be submitted promptly to the seller
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Which of these sentences accurately lists rules for interpreting a contract? - ANSWER: ➡
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Typed text takes precedence over pre-printed text, and spelled-out numbers (e.g. four) take
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precedence over numerals (e.g. 5)
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Zelda received an offer from Matthew for her house on Monday. The offer is set to expire
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Wednesday. After a sleepless night on Monday, Matthew told his broker to revoke the offer.
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Zelda hadn't accepted the offer as of Tuesday night. What happens to Matthew's offer? -
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ANSWER: ➡ The offer is terminated under contract revocation laws
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Kent has received an offer for his house. What is the best solution if there are some offer terms
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he's hesitant to accept? - ANSWER: ➡ Reject the offer but reply with a form that outlines
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acceptable conditions
g g
, When does substantial performance of a contract occur? - ANSWER: ➡ One party has met
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most but not all of the terms specified in the contract, and may be required to pay damages for
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the terms not met
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Thad received multiple offers on his property and is reviewing them with his agent Nora. All of
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the offers have at least one contingency. Nora recommends that they reject the second offer,
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because it has a contingency that's generally the most risky. Which contingency is that? -
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ANSWER: ➡ Home sale
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Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-offer.
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Kendra is now considering the counter. What role does Kendra currently have in this scenario?
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- ANSWER: ➡ Offeree
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What does the parol evidence rule say about contracts? - ANSWER: ➡ The terms agreed to in a
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written contract are the only terms relating to that contract
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Barney and Zack signed a sales contract. Zack changed the down payment amount from $2,000
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to $5,000 using a software program. Barney then wrote $4,500 by hand on a printed copy and
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sent it back to Zack. What is the amount of the down payment since both parties have signed? -
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ANSWER: ➡ $4,500
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What is the definition of a legally competent party? - ANSWER: ➡ Someone who has the legal
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and mental capacity to enter into a contract
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Which party is bound by a bilateral contract? - ANSWER: ➡ Both the seller and the buyer
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Which of the following is a good rule of thumb regarding multiple offers? - ANSWER: ➡ Make
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sure to consider all the terms of each offer
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