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North Carolina Real Estate Commission NC Real Estate Broker National Sample Questions (Q54-Q59):
NEW QUESTION # 54
An investor bought a small office building for $500,000. They sold it 10 years later for $480,000. What is their percentage of loss?
Answer: A
Explanation:
To calculate the percentage of loss:
Loss = Original Price # Sale Price = $500,000 # $480,000 = $20,000
Percentage loss = ($20,000 ÷ $500,000) × 100 = 4%
Correct answer: A
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NEW QUESTION # 55
A homeowner has been trying to sell their house for some time, but buyers seem to be turned off by the odor from a nearby chicken farm. This is an example of:
Answer: D
Explanation:
External obsolescence refers to a loss in property value caused by external factors beyond the property owner' s control. These could include undesirable neighboring properties, economic shifts, or environmental conditions. In this case, the unpleasant odor from the nearby chicken farm is an environmental factor reducing buyer interest. Therefore, the correct answer is B.
NEW QUESTION # 56
Which of these activities is prohibited by federal antitrust laws?
Answer: C
Explanation:
Federal antitrust laws, including the Sherman Antitrust Act, prohibit activities that restrict fair competition.
One of the key prohibited practices is price-fixing-an agreement among competitors to set commission rates or pricing, which violates the requirement for competitive, independent business conduct. Price gouging is related to consumer protection during emergencies, and racial discrimination falls under fair housing law, not antitrust. Providing legal advice is a separate licensing concern. Therefore, A is correct.
NEW QUESTION # 57
A buyer's stable monthly income is $6,800. Every month they pay a $485 car payment, $200 in a revolving credit payment, and $1,500 in alimony. Using ratios of 31% and 43%, what is the maximum monthly mortgage payment they would qualify for on an FHA-insured mortgage loan?
Answer: D
Explanation:
FHA mortgage qualification uses two ratios:
Housing ratio (Front-end): 31% of monthly gross income
Total debt ratio (Back-end): 43% of monthly gross income
Step 1: Calculate max housing (front-end)
31% × $6,800 = $2,108
Step 2: Calculate max total debts (back-end)
43% × $6,800 = $2,924
Subtract monthly debts: $485 + $200 + $1,500 = $2,185
Max mortgage payment allowed = $2,924 # $2,185 = $739
The borrower is limited by the back-end ratio, so the maximum housing expense is $739.
Note: The initial selected answer choice "B. $1,763" would exceed the debt ratio when combined with existing monthly obligations. The correct final answer is A.
NEW QUESTION # 58
A listing broker receives a signed offer from a buyer. Although the broker must present the offer to the seller as soon as possible, under the North Carolina Real Estate Commission Rules, the broker must present the offer:
Answer: D
Explanation:
NCREC rules require brokers to present all written offers to their client "immediately, but in no event later than three days." However, standard practice and Commission guidance emphasize that brokers must present offers no later than the end of the next business day after receipt. This ensures timely communication and allows the seller to respond promptly, especially in a competitive market. Therefore, the correct answer is B.
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NEW QUESTION # 59
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