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SUPERIOR NC REAL ESTATE IMPORTANT FINAL EXAM QUESTIONS
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SUPERIOR NC REAL ESTATE IMPORTANT FINAL EXAM QUESTIONS
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SUPERIOR NC REAL ESTATE IMPORTANT FINALEXAM QUESTIONS
RESPA - Answers- -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) - Answers- 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 - Answers- 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: - Answers- 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 - Answers- 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. - Answers- 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.
If a person obtains property through a ground lease, which of the following rights does
he/she typically receive?
A. The right to build structures on the property
B.The right to transfer ownership of the property to a 3rd party, during term of the
ground lease.
C.The rights to all minerals beneath the ground.
D.The rights to oil and gas deposits beneath the ground. - Answers- A. The right to
build structures on the property.
Although the actual rights and interests that the tenant may acquire will be contained in
the lease, a ground lease, which is usually for a long term, does typically allow the
lessee to construct a building on the property. At the end of the lease term those
improvements will become the property of the lessor. Ground leases do not usually
transfer mineral or subsurface rights to the lessee.
Concerning the residential property disclosure statement, which of the following is/are
TRUE?
A. Licensees are required to advise and assist the seller with the disclosure.
B. The disclosure must be provided at first substantial contact.
C. Failure to provide the disclosure creates a 5-day right of recission period for the
buyer.
D. A For Sale by Owner is exempt from providing the disclosure. - Answers- A.
Licensees are required to advise and assist the seller with the disclosure.
The role of the agent in regard to the Property Disclosure Statement is to advise and
assist the seller. The seller may choose to answer questions, "yes," "no," or "no
representation." However, the licensee should not tell the seller to respond to any
question in a particular manner.
What type of homeowner's insurance policy is typically required on a condominium?
A. HO-1
B. HO-3
C. HO-5
D. HO-6 - Answers- D. Ho-6
An HO-6 policy is the condominium policy. It mainly covers the contents and the interior
of the unit as well.
A typical residential property management agreement would impose all of the following
duties upon a property manager, EXCEPT:
A. cleaning and maintaining the common areas
B.collecting rents due
C.maintaining records and reporting to the owner
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