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North Carolina Real Estate Commission NC Real Estate Broker National Sample Questions:

1. Which situation would be an appropriate use of an expedited eviction process in North Carolina?

A) A tenant has filed a false complaint with a local housing authority.
B) A tenant in a two-week vacation rental has breached the rental agreement.
C) A residential tenant has not paid the rent in more than two months.
D) A tenant has been arrested on a charge of domestic violence.

2. If a buyer defaults on a purchase agreement just prior to settlement, what clause in the contract would likely allow the seller to keep the earnest money deposit?

A) Punitive damages
B) Liquidated damages
C) Compensatory damages
D) Actual damages

3. Under the North Carolina Timeshare Act, a timeshare developer must allow a buyer to cancel a purchase contract without penalty for how long after signing the contract?

A) 10 days
B) Under the law, there is no right of cancellation
C) 5 days
D) 3 days

4. On a settlement statement, the seller's net proceeds are calculated by:

A) subtracting the buyer's credits from the seller's credits.
B) subtracting the seller's debits from the seller's credits.
C) subtracting the seller's debits from the buyer's debits.
D) subtracting closing costs from the purchase price.

5. An appraiser who is appraising a duplex gathers the following information: rent, vacancy rate, mortgage loan payments, property taxes, the owner's income tax obligations, and various expenses. The appraiser also examines the same information from other similar properties in the area as well as their sales prices. To find the net operating income of the subject property, what does the appraiser need to consider?

A) Vacancy losses
B) None of the operating expenses
C) Mortgage payments of principal and interest
D) Owner's income tax obligations

Solutions: