Free North Carolina Property Practice Test — LicenseIQ

Question 1

A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

Accepted Answer

In a gross lease the tenant pays flat rent and the landlord covers taxes, insurance and maintenance; in a net lease the tenant pays some or all of those expenses.

Question 2

A buyer's agent learns that a registered sex offender lives two houses away from a listed home. Under North Carolina law:

Accepted Answer

G.S. 39-50 provides that the presence of a registered offender nearby, or a death or serious illness in the property, is not a material fact. Brokers may not knowingly make a false statement if asked.

Question 3

Marketable title means title that is:

Accepted Answer

Marketable title is reasonably free from defects and insurable - not necessarily perfect.

Question 4

In general, a 'stigmatized' property refers to one:

Accepted Answer

Stigmatized properties are affected by events (crime, death) rather than physical condition; disclosure rules vary by state. (Well-established principle; not detailed in the course.)

Question 5

A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

Accepted Answer

Annual tax = $312,000 x 0.0225 = $7,020; quarterly = $7,020 / 4 = $1,755.

Question 6

In a mortgage, the borrower who pledges the property as security is the:

Accepted Answer

The mortgagor (borrower) gives the mortgage to the mortgagee (lender) in exchange for the loan.

Question 7

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 8

A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

Accepted Answer

Fair housing law requires reasonable accommodations for persons with disabilities, including service animals despite no-pet rules.

Question 9

North Carolina property taxes for a given calendar year are due on:

Accepted Answer

Under G.S. 105-360, taxes are due September 1 and interest begins accruing on January 6.

Question 10

On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:

Accepted Answer

Only the seller completes the form, reporting what is known and stating when something is unknown; guessing creates liability.

Question 11

Engaging in real estate brokerage in North Carolina without a license is:

Accepted Answer

G.S. 93A-8 makes unlicensed brokerage a Class 1 misdemeanor. The Commission may also seek an injunction, but an injunction is in addition to the criminal penalty, not instead of it.

Question 12

A property sells for $412,600. The excise tax is:

Accepted Answer

$412,600 / $500 = 825.2, which rounds up to 826. 826 x $1 = $826.

Question 13

After a hearing, the North Carolina Real Estate Commission may impose all of the following EXCEPT:

Accepted Answer

G.S. 93A-6 authorizes reprimand, censure, suspension, and revocation, and the Commission may attach conditions. It does not authorize civil fines.

Question 14

The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

Accepted Answer

Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.

Question 15

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 16

The government's power to take private property for public use with just compensation is:

Accepted Answer

Eminent domain (exercised through condemnation) allows taking for public use with just compensation. Escheat applies when an owner dies without a will or heirs.

Question 17

In a life estate, the person who receives the property when the life tenant dies is the:

Accepted Answer

The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.

Question 18

A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

Accepted Answer

Article 11 requires competence; if lacking expertise, the REALTOR must get qualified help (disclosed to the client) or decline.

Question 19

The North Carolina Real Estate Commission consists of:

Accepted Answer

G.S. 93A-3 provides for nine members: seven appointed by the Governor and two by the General Assembly. They serve three-year staggered terms. At least three must be brokers and at least two must be public members, so 'all brokers' is wrong.

Question 20

Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

Accepted Answer

REALTORS must disclose in writing their licensed status and any interest when buying or selling property for themselves or family.

Question 21

Adverse possession allows someone to acquire title by:

Accepted Answer

Adverse possession requires open, notorious, exclusive, continuous and hostile use for the statutory period. A tenant's possession is permissive, not hostile. (Reclassified to section 1 / CORE.)

Question 22

On June 1 Ann deeds her lot to Ben, who does not record. On June 5 Ann deeds the same lot to Cal, who paid value and knew of the deed to Ben. Cal records June 6, and Ben records June 8. Who holds title?

Accepted Answer

Under G.S. 47-18, the first purchaser for value to record prevails, and actual notice does not matter. Cal recorded first.

Question 23

A mandatory evacuation order forces vacation tenants to leave on day 3 of a 7-night stay. They declined evacuation insurance that the broker offered before they took possession. The tenants are entitled to:

Accepted Answer

G.S. 42A-36 grants a prorated refund after a mandatory evacuation, unless the tenant declined (or bought) evacuation insurance offered by the landlord or broker.

Question 24

North Carolina's excise tax on deeds is:

Accepted Answer

G.S. 105-228.30 imposes $1 per $500 or fractional part, paid by the transferor.

Question 25

A consumer signs the acknowledgment on the Working with Real Estate Agents disclosure. This signature:

Accepted Answer

WWREA is a disclosure only. Agency arises from an agency agreement, which for buyers may be oral until it must be put in writing.

North Carolina real estate property practice test

1. A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

2. A buyer's agent learns that a registered sex offender lives two houses away from a listed home. Under North Carolina law:

3. Marketable title means title that is:

4. In general, a 'stigmatized' property refers to one:

5. A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

6. In a mortgage, the borrower who pledges the property as security is the:

7. An owner's title insurance policy protects against:

8. A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

9. North Carolina property taxes for a given calendar year are due on:

10. On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:

11. Engaging in real estate brokerage in North Carolina without a license is:

12. A property sells for $412,600. The excise tax is:

13. After a hearing, the North Carolina Real Estate Commission may impose all of the following EXCEPT:

14. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

15. Under the statute of frauds, a real estate sales contract must be:

16. The government's power to take private property for public use with just compensation is:

17. In a life estate, the person who receives the property when the life tenant dies is the:

18. A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

19. The North Carolina Real Estate Commission consists of:

20. Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

21. Adverse possession allows someone to acquire title by:

22. On June 1 Ann deeds her lot to Ben, who does not record. On June 5 Ann deeds the same lot to Cal, who paid value and knew of the deed to Ben. Cal records June 6, and Ben records June 8. Who holds title?

23. A mandatory evacuation order forces vacation tenants to leave on day 3 of a 7-night stay. They declined evacuation insurance that the broker offered before they took possession. The tenants are entitled to:

24. North Carolina's excise tax on deeds is:

25. A consumer signs the acknowledgment on the Working with Real Estate Agents disclosure. This signature:

Sources