Pass the Real Estate North Carolina Real Estate Commission NCREC-Broker-N Questions and answers with ValidTests

Step 1: Determine assessed value

Market value = $630,000

Assessment rate = 50%

Assessed value = $630,000 × 0.50 = $315,000

Step 2: Calculate tax

Tax rate = $32 per $1,000

$315,000 ÷ $1,000 = 315

315 × $32 = $10,080

However, this result matches option C. Therefore:

Answer: C

Corrected Final Answer: C. $10,080

Explanation Confirmed: Assessed value is 50% of $630,000 = $315,000. Tax at $32 per $1,000 means $315 × $32 = $10,080. Correct answer is C.

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An option contract gives the buyer (optionee) the exclusive right, but not the obligation, to purchase a property at a predetermined price within a specified time. The seller (optionor), however, is bound by the terms of the contract and must sell if the buyer exercises the option. Consideration (often a non-refundable option fee) is required to make the option enforceable. Therefore, the seller is obligated to sell if the buyer chooses to exercise the option, making statement B true.

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Anexclusive right to selllisting gives one broker the sole authority to market and sell a property. The broker is entitled to a commissionno matter who procures the buyer, even if the seller finds the buyer independently during the listing period commission payment upon sale within the term—matchingoption A. Option B is false (that applies to exclusive agency); C applies to open or exclusive-agency; and D conflicts with the exclusivity provision.

A defeasible fee estate (specifically, a fee simple determinable or fee simple subject to a condition subsequent) is one that may be voided if a specific condition is violated or a required event does not occur. In this case, the condition is that the church cannot build a parking lot. If it does, ownership may revert to the grantor. Therefore, the correct answer is B.

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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.

Under the NCAR/NCBA Standard Form 2-T, if the buyer terminates the contract during the due diligence period and provides written notice, they are entitled to a full refund of the earnest money deposit. However, the due diligence fee is non-refundable unless the seller breaches the contract. Therefore, the correct answer is B.

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In North Carolina, a broker may not disclose the price or terms of one buyer’s offer to another party without the express permission of the party who made the offer. This ensures fair dealing and prevents misuse of confidential offer terms. While a seller can instruct a broker to disclose that there are multiple offers, the details (like price, due diligence fee, etc.) require written consent from the offeror. Therefore, the correct answer is B.

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According to Paragraph 12 of the NCAR/NCBA Offer to Purchase and Contract (Form 2-T), the settlement date may be extended by up to 7 calendar days if either party is acting in good faith and is prepared to settle. This flexibility ensures neither party is penalized for delays that are minor and in good faith, but it limits how long the contract can be extended before a material breach could occur. Therefore, the settlement date can be delayed up to 7 calendar days and still remain enforceable.

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Under NCREC rules, the Working With Real Estate Agents Disclosure must be presented and reviewed with a prospective buyer or seller at the first substantial contact. “Substantial contact” occurs when conversations begin to include personal, financial, or confidential information. It does not have to be tied to signing an agreement or making an offer. Therefore, the correct answer is B.

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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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