[Compliance with Laws and Regulations North Carolina Timeshare Act] 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?
Answer(s): B
According to the North Carolina Timeshare Act, a purchaser of a timeshare has the right to cancel the purchase without penalty within five (5) calendar days after execution of the contract. This right of rescission is non-waivable and must be disclosed in the contract. The cancellation does not require a reason and must be honored fully. Therefore, the correct answer is B.
[Broker's Authority and Duties Types of Agency Relationships] A real estate broker has assisted an investor with the purchase of a number of commercial properties. The investor will be out of the country for part of the year and asks the broker to manage all aspects of those properties during that time, including advertising and leasing. The real estate broker will be considered a(n):
A general agent is authorized to handle a broad range of matters for a client, such as property management or handling day-to-day operations of a business or estate. In this case, the broker is managing all aspects of the investor's real estate portfolio, which qualifies as a general agency relationship. A special agent performs only specific tasks (like listing or selling a single property), and a universal agent has unlimited authority, which is rare. Therefore, the correct answer is B.
[Offers and Negotiations Ethics and Disclosures]In North Carolina, if a listing broker is tempted to disclose the terms of an offer to get another buyer to submit a higher offer, what must the broker do?
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.
[Compliance with Laws and Regulations FHA Financing] When a borrower obtains an FHA-insured loan, the source of the funds is MOST likely to be:
Answer(s): A
The FHA (Federal Housing Administration) does not lend money directly to borrowers. Instead, FHA- insured loans are funded by approved private lenders such as banks, mortgage companies, or credit unions. The FHA insures the loan to protect the lender from default risk. HUD oversees the FHA but does not provide the funds. Fannie Mae is part of the secondary market. Therefore, the correct answer is A.
[Broker's Authority and Duties Trust Account Rules]When submitting an offer, a buyer handed their broker an earnest money deposit in cash. To comply with the North Carolina Real Estate Commission Rules, what must the broker do?
Answer(s): C
Under NCREC rules, a broker must deposit any earnest money received (including cash) into the firm's trust account within three banking days of receipt if the offer has been accepted. If the offer has not yet been accepted, the funds must be safeguarded and then deposited within three banking days following acceptance. Cash must be treated with particular care, and a detailed receipt should be provided. Therefore, the correct answer is C.
Post your Comments and Discuss Real Estate Licensing NCREC-Broker-N exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the NCREC-Broker-N content, but please register or login to continue.