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Real North Carolina Real Estate Commission NCREC-Broker-N Exam Dumps with Correct 127 Questions and Answers
North Carolina Real Estate Commission NCREC-Broker-N Exam Syllabus Topics:
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NEW QUESTION # 11
The property manager of an apartment building would be in violation of the federal Fair Housing Act if they discriminated against a prospective tenant on the basis of:
- A. familial status.
- B. age.
- C. marital status.
- D. military status.
Answer: A
Explanation:
The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, disability, and familial status. Familial status includes pregnant women and families with children under 18.
Age and military status are not federally protected classes under this law (though they may be under local ordinances). Marital status is not a protected class under federal law either. Therefore, the correct answer is B.
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NEW QUESTION # 12
The primary purpose of a comparative market analysis of real property is to provide a(n):
- A. lender with the appropriate market value of the collateral.
- B. appraiser with a thorough picture of the current economic market.
- C. insurer with the estimated cost to rebuild the property.
- D. seller with a range of appropriate listing prices.
Answer: D
Explanation:
A Comparative Market Analysis (CMA) is a tool used by real estate brokers to estimate the probable selling price of a property based on recently sold, active, and expired listings of similar properties. The primary purpose is to assist a seller in determining a reasonable and competitive listing price. Unlike a formal appraisal, a CMA is not intended for use by appraisers, insurers, or lenders. Therefore, the correct answer is C.
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NEW QUESTION # 13
On a settlement statement, the seller's net proceeds are calculated by:
- A. subtracting closing costs from the purchase price.
- B. subtracting the seller's debits from the buyer's debits.
- C. subtracting the buyer's credits from the seller's credits.
- D. subtracting the seller's debits from the seller's credits.
Answer: D
Explanation:
The seller's net proceeds are the total credits due to the seller (such as the sale price) minus all debits (such as mortgage payoff, commissions, taxes, and other closing costs). Therefore, the formula is:
Net Proceeds = Seller's Credits # Seller's Debits.
Correct answer: D.
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NEW QUESTION # 14
In North Carolina, which lien has the highest priority when property is sold to recover a debt?
- A. Judgment lien
- B. Ad valorem property tax lien
- C. Whichever lien was recorded first
- D. Mortgage lien
Answer: B
Explanation:
In North Carolina, and in most states, ad valorem (real estate) property tax liens have "superior lien" status.
They take precedence over all other liens, regardless of recording date. This includes mortgage liens and judgment liens. Therefore, even if a mortgage was recorded first, a property tax lien takes priority. Correct answer: A.
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NEW QUESTION # 15
What principle states that the value of the best home in a neighborhood will be lowered by the existence of inferior homes?
- A. Contribution
- B. Regression
- C. Anticipation
- D. Progression
Answer: B
Explanation:
ThePrinciple of Regressionin real estate appraisal dictates that the value of a higher-quality property is negatively impacted by surrounding inferior properties. In simple terms, even a well-maintained, high-end home can lose value if it's located among less desirable homes. PrepAgent explains:
"The principle of regression states that the value of a more expensive property will decrease when less expensive properties come into the area." This clearly matches the definition and corresponds exactly to optionD.
NEW QUESTION # 16
The buyer of a long-vacant lot plans to build a home. The zoning ordinance for the town in which the property is located indicates that every lot with a structure must be at least 80 feet wide. When the buyer applies for a building permit, they are surprised to learn that the lot is only 76 feet wide. The property is worthless if they cannot build a home. To build a home on the lot legally, what must the buyer obtain from the local zoning board?
- A. Nonconforming use permit
- B. Variance
- C. Conditional exception
- D. Buffer exemption
Answer: B
Explanation:
A variance is an exception to a zoning ordinance granted by the local zoning board when strict enforcement would cause undue hardship due to unique property conditions. In this case, the lot is too narrow for the minimum width requirement, but the buyer can seek a variance to proceed legally. A nonconforming use applies to existing properties that no longer comply after zoning changes. Therefore, the correct answer is D.
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NEW QUESTION # 17
A buyer signs a contract to purchase a 10-year-old unit in a condominium community. Under the provisions of the North Carolina Condominium Act, how many days does the buyer have to rescind the contract?
- A. 7 days
- B. 3 days
- C. The buyer has no such right to cancel the contract.
- D. 5 days
Answer: C
Explanation:
Under theNorth Carolina Condominium Act (N.C.G.S. Chapter 47C), the buyer of a condominium unit has a7-day right of rescission only for new condominiums, meaning units offered for sale in a project not yet completed or occupied. For units in a condominium community that are more than one year old,there is no statutory right to rescind the contractonce signed. Since this is a 10-year-old unit, the buyer doesnot have a rescission period.
Reference:
N.C.G.S. § 47C-3-107 (Right of Rescission for New Condominiums)
NCREC Broker National (Broker-N) Compliance Guide, Section on Condominium Transactions and Buyer Protections NC Real Estate Commission Legal Bulletin: Condominium Rescission Rights, 2023 Therefore, the buyer hasno right to cancelthe contract based solely on the Condominium Act for this 10-year- old unit.
NEW QUESTION # 18
A provision in a contract that makes the parties' rights and obligations dependent on the occurrence or nonoccurrence of a specified event is a(n):
- A. stipulation
- B. contingency
- C. option
- D. amendment
Answer: B
Explanation:
A contingency is a clause in a contract that makes the agreement dependent upon a certain event or action occurring before the contract becomes fully binding. Common examples include financing, appraisal, or home inspection contingencies. An amendment modifies an existing contract, an option gives a party the right but not the obligation to act, and a stipulation may refer to a general condition but not necessarily a legal contingency. Therefore, the correct answer is B.
NEW QUESTION # 19
A North Carolina resident who believes they were refused a lease in a new apartment building because of their sexual orientation can file a complaint with the North Carolina Human Relations Commission, but they must do so within ________ of the alleged discrimination.
- A. 3 months
- B. 2 years
- C. 1 year
- D. 6 months
Answer: C
Explanation:
Under both federal and North Carolina law, individuals who believe they have experienced housing discrimination must file a complaint within one year of the alleged act to seek administrative remedies through the North Carolina Human Relations Commission or HUD. Discrimination based on sexual orientation is protected under federal fair housing law via interpretation of "sex" as a protected class.
Therefore, the correct answer is C.
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NEW QUESTION # 20
A seller wants to net $200,000 from a transaction but will have to pay off a home loan and other fees, at a total cost of $288,800. The seller will also need to pay a 6% commission. What will the property need to sell for?
- A. $488,800
- B. $518,128
- C. $520,000
- D. $567,008
Answer: C
Explanation:
Let X = sale price.
Seller nets $200,000 and owes $288,800 in fees and costs. A 6% commission will be taken from the sale price.
Net = 0.94X - 288,800 = 200,000
Solving:
0.94X = 488,800
X = $520,000
Therefore, the required sale price is $520,000 - answer C.
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NEW QUESTION # 21
A North Carolina broker arranges a real estate sales transaction while working for a brokerage firm. If the broker's license becomes inactive before the transaction closes, the brokerage firm:
- A. can pay the commission to the broker.
- B. must keep the commission.
- C. must return the commission to the seller.
- D. must pay the commission to the licensee who took over the transaction for the now-inactive broker.
Answer: A
Explanation:
According to North Carolina Real Estate Commission policy, as long as the broker was actively licensed at the time the transaction was originated (i.e., while performing licensed activity), the broker is legally entitled to compensation-even if their license becomes inactive before closing. The commission is paid through the firm. Therefore, the correct answer is A.
NEW QUESTION # 22
Which of the following statements regarding the proper handling of multiple offers in North Carolina is TRUE?
- A. A listing broker should prioritize the highest offer when presenting multiple offers.
- B. A listing broker must disclose the existence of multiple offers to all buyers before they make an offer.
- C. A listing broker must disclose the terms of a buyer's offer to every competing buyer.
- D. A listing broker must continue to present offers even if the seller has accepted a previous offer.
Answer: D
Explanation:
According to NCREC rules and guidance, a listing broker is obligated to continue presenting all offers to the seller until closing, unless specifically instructed otherwise by the seller in writing. Even if the seller has accepted an offer, other offers must still be presented unless the transaction is completed. Brokers are not required to disclose the terms of competing offers (doing so requires written consent), nor are they required to prioritize offers based on price alone. Therefore, the correct and legally accurate answer is B.
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NEW QUESTION # 23
According to the North Carolina Real Estate Commission Rules, a broker must deliver a copy of any signed purchase agreement to their client or customer within ____ of receipt.
- A. 3 days
- B. 2 days
- C. 4 days
- D. 24 hours
Answer: D
Explanation:
NCREC rules require that brokers deliver a copy of any executed (signed) document to all parties within 3 calendar days. However, a stricter rule applies to offers and contracts: any signed agency agreement or sales contract must be delivered within 3 days, and any executed offer must be delivered "immediately, but in no case later than 3 days." Best practice-and NCREC recommendation-is within 24 hours. Therefore, the most accurate and safe answer is A.
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NEW QUESTION # 24
For which appraisal assignment is the gross rent multiplier (GRM) method MOST appropriate?
- A. Warehouse complex
- B. 10-unit apartment building
- C. Retail establishment
- D. Residential duplex
Answer: D
Explanation:
The Gross Rent Multiplier (GRM) is best suited for valuing small residential income properties, typically 1-4 units, where monthly rental income is a primary valuation factor. Among the options, a residential duplex (two units) fits this criteria perfectly. Larger multi-unit properties and commercial properties typically require more complex income capitalization approaches.
Reference:
NCREC Appraisal Study Guide - Income Approach
Uniform Standards of Professional Appraisal Practice (USPAP) Guidelines on GRM Use
NEW QUESTION # 25
In the government survey system of legal description, the north-south lines and east-west lines intersect to create what?
- A. Sections
- B. Townships
- C. Tiers
- D. Ranges
Answer: B
Explanation:
In the rectangular (government) survey system, north-south lines (called principal meridians and range lines) and east-west lines (called base lines and township lines) intersect to form squares known as townships.
Townships are 6 miles by 6 miles and are further divided into 36 sections. Therefore, the correct answer is D
- townships.
NEW QUESTION # 26
A North Carolina broker may be subject to disciplinary action for failing to deliver to their client a detailed and accurate closing statement. What obligation does the broker have if the settlement statement will be prepared by a settlement agent and provided at closing?
- A. Have the statement notarized and recorded at the office of the register of deeds
- B. Review the statement for accuracy and notify all parties to the closing of any errors
- C. Ensure that the statement is signed by both the buyer and the seller
- D. Ensure that the statement is delivered to the client at least three days before closing
Answer: B
Explanation:
North Carolina license law requires brokers to ensure their client receives a detailed closing statement. Even if the attorney or settlement agent prepares the statement, the broker must review it for accuracy and notify all parties of any errors. Failure to do so may result in disciplinary action.
NEW QUESTION # 27
A contract in which one or both parties have not yet completed performance of their contractual obligations is referred to as:
- A. executed
- B. executory
- C. voidable
- D. unenforceable
Answer: B
Explanation:
An executory contract is one in which terms have been agreed upon, but some or all of the obligations have yet to be performed. For example, a purchase contract where the closing has not yet occurred is executory. An executed contract is one where all parties have completed their obligations. A voidable contract is valid unless canceled by one party due to a legal defect. An unenforceable contract cannot be upheld in court. Therefore, the correct answer is B.
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NEW QUESTION # 28
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