Question 1

A seller sold their house for $600,000. They are responsible for paying a 6% commission to the listing broker, closing costs of $8,500, and the remaining balance on their prior mortgage loan of $60,000. How much will they net on the sale?

Options :

A : $499,610

B : $495,500

C : $531,500

D : $564,000

Answer: B

Question 2

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?

Options :

A : 3 days

B : 5 days

C : 10 days

D : Under the law, there is no right of cancellation

Answer: D

Question 3

What principle states that the value of the best home in a neighborhood will be lowered by the existence of inferior homes?

Options :

A : Anticipation

B : Contribution

C : Progression

D : Regression

Answer: D

Question 4

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?

Options :

A : $739

B : $1,763

C : $1,972

D : $2,108

Answer: B

Question 5

When selling a house that was built before 1978, the seller is required to:

Options :

A : conduct an inspection for lead-based paint hazards.

B : give the buyer the opportunity to conduct their own lead paint inspection.

C : mitigate any lead-based paint hazards on the property.

D : pay for a lead-based paint risk assessment.

Answer: B

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