Question 1

The monthly rent for each unit in a six-unit office building is $2,500. The annual vacancy rate averages 4%. The owner collects $3,000 per year in advertising fees. Annual operating expenses are $40,000. The annual debt service is $25,000. What is the net operating income of this property?

Options :

A : $110,800

B : $132,680

C : $135,800

D : $150,800

Answer: C

Question 2

The property manager of an apartment building would be in violation of the federal Fair Housing Act if they discriminated against a prospective tenant on the basis of:

Options :

A : age.

B : familial status.

C : marital status.

D : military status.

Answer: B

Question 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?

Options :

A : 3 days

B : 5 days

C : 10 days

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

Answer: D

Question 4

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 5

Bernie is the broker-in-charge at a brokerage firm located in North Carolina. He is actively involved in listing and selling properties. Mei is a provisional broker at the same brokerage firm. She has a buyer client who has expressed interest in one of Bernie's listings. In this transaction, what would be a permissible agency arrangement?

Options :

A : Bernie and Mei could act as dual agents to both clients.

B : Bernie and Mei each have a single agency relationship with their respective clients.

C : Bernie and Mei would be designated agents of their respective clients.

D : Bernie would be the designated agent for both buyer and seller.

Answer: C

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