Principles, Property, and Land Use Practice Question

Question

A closing coordinator flags an issue before settlement for the North Carolina Real Estate Broker Exam involving leasehold estate and material facts and due diligence practice. Which answer best reduces risk? (Item 103)

Answer choices

1. A. A verbal understanding always replaces a written real estate requirement.
2. B. The safest practice is to avoid written documentation so fewer questions are raised later.
3. C. Distinguish a tenant’s possessory interest from ownership of the fee in a way that fits North Carolina exam practice.
4. D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.

Correct Answer

C. Distinguish a tenant’s possessory interest from ownership of the fee in a way that fits North Carolina exam practice.

Explanation

The correct answer is C because leasehold estate requires candidates to distinguish a tenant’s possessory interest from ownership of the fee. The North Carolina reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.

Question details

• Difficulty: medium
• Domain: Principles, Property, and Land Use
• Objective: leasehold estate

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