Real Estate Licensing NCREC-Broker-N Exam Dumps

In a cooperative (co-op) ownership arrangement, the real estate is owned by a corporation. Individual residents do not own their units as real property. Instead, they own shares of stock in the corporation and receive a proprietary lease, which gives them the right to occupy a specific unit. This contrasts with condominium ownership, where unit owners hold fee simple title. Therefore, the correct answer is D.

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Step 1: Calculate Gross Scheduled Income

6 units $2,500/month 12 months = $180,000

Step 2: Deduct Vacancy Loss (4%)

$180,000 0.04 = $7,200

Effective Gross Income = $180,000 $7,200 = $172,800

Step 3: Add Other Income

$172,800 + $3,000 (advertising fees) = $175,800

Step 4: Subtract Operating Expenses (ignore debt service)

$175,800 $40,000 = $135,800

Note: Net Operating Income (NOI) excludes debt service.

Correct answer: C

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North Carolina rules prohibit a broker from representing a buyer in the purchase of property in which the broker has an ownership interest, regardless of whether the property is a vacation home, primary residence, or investment. The potential for conflict of interest is considered too great, and no form of dual or designated agency is permitted in such situations. Therefore, the broker cannot represent the buyer under any circumstances.

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An Alienation Clause---also known as a due-on-sale clause---gives the lender the right to demand full repayment of the loan if the borrower transfers ownership or sells the property without the lender's consent. This clause is standard in most modern mortgage agreements to protect the lender's interest.

NCREC Real Estate Finance Section

Federal Reserve Glossary -- Alienation Clause Definition

Broker National (Broker-N) Financing Chapter

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.

Correct Answer: A

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.

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