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Practice Test Review

Terms in this set (31)

Plat Map
A detailed survey map of a subdivision, recorded in the county where the land is located. Subdivided property is often called platted property.
Lot and Block System
The type of legal description used for platted property. The description states only the property's lot number and block number in a particular subdivision.
Metes and Bounds System
A legal description that starts at an easily identifiable point of beginning (POB) and describes a property in terms of compass directions and distances. Ultimately returning to the POB.
Governmental Survey
A type of legal description for land that divides the land into a grid using a series of meridians and baselines. Also called Rectangular Survey System and originally called Public Land Survey System.
Appurtenance
A right that goes along with ownership of real property; usually transferred with the property, but may be sold separately. (This is a legal term referring to both physical and non-physical appurtenances.)
If a buyer decides to cancel their offer during the due diligence period
The listing broker agent must complete the aEarnest Money Release form with the seller's and buyer's signatures before releasing any earnest money to the buyer.
Which of the following statements is correct regarding building codes?
Building codes are created at the state level through the building code council but enforced at the local level.
Easement Appurtenant
The right acquired by the owner of one parcel of land to use another's adjacent land for a specific purpose. There must be two tracts of land; one becomes the dominant tenement (it benefits from the easement), and the other becomes the servient tenement.
If a buyer is not provided a Residential Property Disclosure Statement by the seller
The buyer has the right to cancel their contract within 3 days of the date the contract was accepted.
Ad Valorem Tax rate may adjust
Once a year.
Subagency imposes on the provisional broker the fiduciary obligations of the firm when
working with the seller that has a listing with the firm.
To find Assessed Value of a property
DIVIDE Property tax by tax rate (in mills/hundreds as %)
North Carolina Residential Property Disclosure Act
Requires the seller of residential real estate (one to four dwelling units) to complete a form, known as the Residential Property and Owners' Association Disclosure STATEMENT, disclosing conditions and defects with the property. The form must be given, what is written is up to the seller.
When a spouse dies under tenants of the entirety, their surviving spouse gets on half interest of the property and the heirs receive the other half. What is this considered?
Community Property.
Unilateral Revocation
In a unilateral contract, the offeror may revoke the offer before the offeree's performance begins. An offer for a unilateral contract cannot be revoked once the offeree has commenced performance and intends and is capable of completing performance. Typically the revocation needs to be express.
What is the typical type of agency between a seller and a real estate firm?
Special.
A deed that only warrants claims and encumbrances against the property during the term of the grantors ownership is
Special Warranty Deed.
If the garage looks like it is located within the boundaries of the property line, which of the following statements is FALSE?
The seller is required to disclose the existence of the encroachment on the seller's property disclosure.
A valid and enforceable contract must have all of the following EXCEPT
Monetary consideration.
If the property taxes have been paid by the seller, when the property is transferred, how will the prorations of the taxes be handled on the closing disclosure?
Debit to the buyer, credit to the seller.
An offer to purchase would include all of the following EXCEPT
The fees to be charged to the parties.
When someone dies testate, the people who inherit the descendant's real property from an executor would be receiving
Devise. Anyone who receives title to real estate through a will is known as a devisee; the gift of real property is called a devise.
A purchase contract in which one of the parties has made a substantial misrepresentation or omission is
Voidable by the party damaged by the misrepresentation.
To find the minimum selling price of a home, add expenses together then take the total and
DIVIDE by the % of commission out of 100. If the commission is 6.5% take 100-6.5 and divide 93.5 by the total amount of expenses to get the minimum selling price.
What would a property owner need to put in a wheel chair ramp to accommodate a family member on a property which would violate the community setback requirements from the sidewalk?
A variance.
State transfer tax must be
rounded to the nearest dollar.
A licensed real estate broker decides he wants to buy his seller's property himself. He can do so if
he discloses that he is the buyer to the seller.
Local governments exercise control over the permitted use of private property primarily through
Zoning ordinances.
Legally, the presence of a sexual offender in the neighborhood is considered
an immaterial fact that a licensee is not required to disclose.
Proprietary Lease
A lease given by the corporation that owns a cooperative apartment building to the shareholder for the shareholder's right as a tenant to an individual apartment.
Connor Act
NC law that requires many types of real estate documents to be recorded for protection against claims from third parties. Also providing constructive notice to the transfer.
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