[Miscellaneous Provisions and Notices Property Valuation] What are the four elements of value that must exist in harmony to maximize the value of real property?
Answer(s): A
The four economic characteristics necessary for real property to have value are:Demand: There must be a desire or need for the property. Utility: The property must serve a purpose or satisfy a need. Scarcity: There must be a limited supply of similar properties. Transferability: The ownership rights must be transferable from one party to another. These four components form the acronym DUST and are foundational in property valuation. The correct answer is A.
[Offers and Negotiations Contract Remedies]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?
Answer(s): C
Liquidated damages refer to a pre-agreed amount of compensation (often the earnest money deposit) that one party is entitled to retain in the event the other party breaches the contract. In North Carolina, the standard Offer to Purchase and Contract includes provisions stating that if a buyer breaches after due diligence, the seller may retain the earnest money as liquidated damages.Therefore, the correct answer is C.
[Compliance with Laws and Regulations Government Rights in Land] By what right could a county acquire private land necessary to build a new highway ramp?
Answer(s): B
Eminent domain is the government's right to take private property for public use, with just compensation to the owner. The legal process used to exercise this right is called condemnation.Therefore, while condemnation is the procedure, the actual right exercised is eminent domain. Escheat involves reverting property to the state when there is no heir, and police power involves regulations like zoning. Correct answer: B.
[Offers and Negotiations Contract Law]A prospective buyer offers to buy a house for $415,000, with an earnest money deposit of $1,000. The seller crosses out the earnest money amount, changes it to $4,000, initials and dates the change, signs the offer, and returns it to the buyer. Which of the following statements is TRUE?
Answer(s): D
Any change to the terms of an offer--regardless of how small--constitutes a rejection of the original offer and the creation of a counteroffer. In this case, the seller changed the earnest money amount, which is a material term of the offer. Therefore, the original offer is void and the seller has made a counteroffer that the buyer can now accept or reject. Correct answer: D.
[Broker's Authority and Duties Postlicensing Requirements] Which statement about postlicensing education requirements for North Carolina provisional brokers is TRUE?
North Carolina provisional brokers are required to complete three postlicensing courses, each 30 hours in length, for a total of 90 hours. These must be completed within 18 months of licensure. Failure to complete these results in the license status being changed to inactive--not revoked. Additionally, postlicensing is not required to activate a license initially, but must be completed to remove the "provisional" status. Therefore, the correct answer is C.
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