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 North Carolina Real Estate Commission. Which answer best reduces risk? (Item 3)

Answer choices

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

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

Practice more

Start Principles, Property, and Land Use practice

Back to Principles, Property, and Land Use