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303 NC POST LICENSING EXAM
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When should a provisional broker deliver monies to BIC? - CORRECT ANSWER Immediately All deposits must be made to the trust account within.. - CORRECT ANSWER 3 banking daysof receipt or contract acceptance, whichever is later. Trust accounts may earn interest so long as, - CORRECT ANSWER The broker has writtenconsent of the client and a written agreement specifies who gets the interest. BICs may transfer earnest money for closing no more than - CORRECT ANSWER 10 daysprior to settlement Trust accounts must be balanced every: - CORRECT ANSWER Every 30 days Trust account records must be maintained for - CORRECT ANSWER 3 years Sole Proprietorship - CORRECT ANSWER No creation of an entity but may operate under atrade name. Personally liable for all debts and liabilities. Income taxed as regular income, no shelter of tax liability. Corporation - CORRECT ANSWER Legal entity owned by stockholders Could be an S corp or C corp
An expired license means that the license has to be - CORRECT ANSWER Reinstated If expired for less than 6 months - CORRECT ANSWER - File reinstatement application form
- Pay $90 reinstatement fee If expired more than 6 months but less than 2 years - CORRECT ANSWER - File reinstatementform
- Pay $90 reinstatement fee
- Complete one 30-hr class If expired more than 2 years - CORRECT ANSWER - Complete 75 hr prelicensing course
- Retake NC exam
- Complete 90 hrs of post licensing If inactive due to CE deficiency less than 2 years - CORRECT ANSWER - Complete currentyears of CE - 8 hrs
- Complete previous years deficiency (4-8 hrs CE)
- File license activation form If inactive due to CE deficiency more than 2 years - CORRECT ANSWER - Complete currentyears CE
- Complete 60 hours of Post - 2 post classes
- File license activation form The two key questions to ask any team are? - CORRECT ANSWER 1. Have you created anentity?
- Is the entity name being used in marketing and ads? Creating a team without creating an entity.. - CORRECT ANSWER - Team name and licenseesto be approved by the BIC of the firm.
LNCL - CORRECT ANSWER Limited North Carolina Licensee Limitations on LNCL - CORRECT ANSWER - May not reside in NC
- May only broker commercial real estate transactions
- Must enter into a brokerage cooperation agreement with a resident NC broker. Payment of fees regarding LNCL. - CORRECT ANSWER Payment of fees earned as LNCLmust be paid to employing broker in qualifying state. Firm license qualifying broker obligations - CORRECT ANSWER - Renew firm license
- Appoint BIC in each location
- Maintain firm certificate and pocket card
- Notify NCREC within 10 days of change in firm name or qualifying broker
- Notify NCREC of registration of any assumed name adopted by the firm.
- Preserve and secure trust account records and transaction records.
- Notify commission of any record or trust account deficiencies. A team may not use their name in advertising if - CORRECT ANSWER the entity has no BIC PBs may only affiliate with two BICs if, - CORRECT ANSWER The BICs are with 2 differentfirms and in the same physical location and acting as co-listing/selling agents. Fair housing in North Carolina is enforced by? - CORRECT ANSWER NC Human relationscommission.
In NC the disciplinary process begins with? - CORRECT ANSWER The filing of a complaint Upon receipt of a complaint, NCREC is required to - CORRECT ANSWER investigate An investigation results in - CORRECT ANSWER a letter of inquiry Respondents of a letter of inquiry must respond to NCREC withing - CORRECT ANSWER 14days Step by step plan for responding to letter of inquiry - CORRECT ANSWER - Review the file
- Write a narrative response
- Attach documents
- Identify witnesses NCREC may impose any of the following sanctions on a licensee as a result of a disciplinaryinvestigation; - CORRECT ANSWER - License revocation
- License suspension
- Reprimand
- Conditions, restrictions, on the license When a provisional broker receives a letter of inquiry, who will be notified, - CORRECTANSWER BIC BIC is required to exercise what to provisional brokers? - CORRECT ANSWER Active anddirect supervision. If complaint is filed against a full broker, the BIC will be named if the complaint falls within oneof the following 5 categories or there is
When a referral is made, what documents should be in the brokers file? - CORRECT ANSWER
- Written documentation regarding the fee
- Proof of licensure
- Copy of W9 for broker issuance of a 1099 The payment of buyer-broker co-op fees is dictated by the policies of?
- CORRECT ANSWERLocal MLS rules and policies The receipt of all compensation requires - CORRECT ANSWER Disclosure to principal andconsent by the principal. RESPA prohibits the payment of.. - CORRECT ANSWER Kickbacks to settlement serviceproviders. The federal RESPA statute applies to.. - CORRECT ANSWER 1-4 Unit residential propertieswith a federally related loan. What transactions do RESPA not apply to? - CORRECT ANSWER - Vacant land transactions
- Cash transactions
- Seller financed transactions
- Commercial transactions When a real estate brokerage has co-ownership of different settlement service providers, it is called an - CORRECT ANSWER ABA (affiliated business arrangement) or a CBA (controlledbusiness arangement) ABAs and CBAs are permitted as long as there is - CORRECT ANSWER - Disclosure of therelationship
- Can't force the use
- Must disclose the fee's
RESPA prohibits real estate licensees from forcing a client or customer to use - CORRECTANSWER Settlement service provider The formal legal definition of a condominium is when the owners have seperate - CORRECTANSWER fee simple ownership of their unit and shared ownership of the common area Title to the common area is held as - CORRECT ANSWER tenant in common In NC condos are regulated by the - CORRECT ANSWER NC condominium act The NC condo act imposes what to be disclosed before the purchase contract? - CORRECT ANSWER Prior to sale, a public offering statement must be disclosed to prospective buyers priorto purchase contract. Rescission period for the NC condo act - CORRECT ANSWER 7 day right of rescission period.There can be no penalty if the rescission is exercised, and the money must be promptly returned. Regarding condo's, where should deposits be held? - CORRECT ANSWER in a trust account There must be a formed prior to transfer of the first unit. - CORRECT ANSWER Unit owners association Condo projects may create a special class of common areas that is reserved for use by one ormore units, these areas are called? - CORRECT ANSWER Limited common areas
within 30 days of the date the contract was executed. A developer may be fined - CORRECT ANSWER $500 for non- compliance and violations What are the trust account and record keeping rules for a developer? - CORRECT ANSWERThe same as for any broker. Retain records for 3 years Make deposits within 3 days Manufactured homes are by definition; - CORRECT ANSWER Personal property Delivered in sections and assembled on site, once these homes are assembled, they become realproperty immediately. Manufactured homes are.. - CORRECT ANSWER - Built to HUD standards with a HUDcertification
- Titled and regulated by the department of Motor vehicles. (DMV) Manufactured homes can be converted to real property for taxation and financing purposes if? - CORRECT ANSWER - Own the land
- Remove hitch, wheels, and axles
- Get an affidavit of affixture (cancels DMV registration) The non-resident limited commercial broker's license is only available to? - CORRECT ANSWER Non-residents of north carolina. Requirements to obtain NLCL - CORRECT ANSWER 1. File an application
- Affiliate with and NC broker
- Limited to commercial practice (Must have an active license in another state Commercial real estate transaction.. - CORRECT ANSWER
Transaction times in commercialare often longer, loan terms are typically shorter, and interest rates are generally higher. The 5 basic types of commercial property are.. - CORRECT ANSWER
- Office
- Retail
- Industrial
- Land
- Specialty properties Commercial Class A means - CORRECT ANSWER No more than 20 years old, modernfeatures, well maintained, excellent quality. Class B in commercial means? - CORRECT ANSWER 20-30 years old, maintained andfunctional, some limitation such as parking and location. Class C in commercial means? - CORRECT ANSWER older than 30 years, serious limitations,lack of maintenance, parking, security. What is a core area? - CORRECT ANSWER Area used up for building functions, lobbies,elevators, stairs, restrooms. What is a rentable area? - CORRECT ANSWER Includes the usable area plus the core area. Floor plate - - CORRECT ANSWER Area of each floor determined by measuring along theexterior walls. Usable area - - CORRECT ANSWER The floor plan minus the core area. Office rentable rates are usually calculated and based on? -
When can an unlicensed person engage in real estate activity? - CORRECT ANSWER
- Theirown property
- Attorney in fact
- Attorney at law
- Court-ordered sales
- Trustees in foreclosure
- Housing authorities "Power of attorney" exemption exists to allow: - CORRECT ANSWER Allow others to use apower of attorney for final consummation in the performance of a contract. In a corporation, who is exempt from licensure when handling entity's own property? - CORRECT ANSWER Officers, directors, and W employees. In a LLC, who is exempt from licensure when handling entity's own property? - CORRECTANSWER Managers and W2 employees. In a partnership, who is exempt from licensure when handling entity's own property? - CORRECT ANSWER General partners, and W employees. Deadline for license renewal is midnight on? - CORRECT ANSWER June 30 every year. License renewal fee $? - CORRECT ANSWER $ Deadline for all CE completion is: - CORRECT ANSWER June 10 Failure to renew license results in license being? - CORRECT
ANSWER Expired How many hours required for Post lisencing and when is the deadline?
- CORRECT ANSWER90 hr post licensing, deadline is 18 months from date of licensure. All licensees must complete hours of CE per year. - CORRECT ANSWER 8 Hours 8 Hrs CE breakdown. 4 hrs , 4 hrs. - CORRECT ANSWER 4 Hrs inmandatory update course, 4 hrs of elective credit. CE deadline - CORRECT ANSWER Midnight June 10 every year CE requirement for provisional brokers starts? - CORRECT ANSWER Prior to 2nd renewal ofthe license. When dealing with an industrial space, environmental issues are generally a major concern andsale or lease may involve environmental impact studies. The following are examples; - CORRECT ANSWER Phase I - Research and due diligence Phase II - Core drilling, samples, testingPhase III - Rem and clean up In commercial, A common practice is to use before a finalpurchase contract is put together by the parties. - CORRECT ANSWER Letter of intent Commercial purchase contracts usually contain an inspection period. When dealing with commercial property this is known as a.... - CORRECT ANSWER 10 Day free look period When valuing an income-producing property, the best appraisal
In a net lease, what is the tenant responsible for paying? - CORRECT ANSWER - Operatingexpenses
- Property taxes
- Insurance Graduated lease - CORRECT ANSWER A lease where rent increases and decreases in setintervals The provisions that describe and define the increases and decreases in graduated leases are called
- CORRECT ANSWER Escalator Index lease - CORRECT ANSWER A lease that has rent increases and decreases that areuncertain and may or may not change based on previously determined indices are called Percentage lease - CORRECT ANSWER When the lease contains a fixed amount plus apercentage of the gross income or sales. Percentage leases are most commonly found in the rental of - CORRECT ANSWER Retailproperties Characteristics of a ground lease - CORRECT ANSWER - Construction of buildings
- Typically long term
- Lessee gets to deduct rent (Improvement belongs to landlord at lease end) Under a typical ground lease the lessee does not typically get the rights to? - CORRECTANSWER Oil and mineral rights NC oil, gas, and mineral lease requirements - CORRECT ANSWER -
In writing
- Must be recorded
- Must be disclosed on transfer Full service lease - CORRECT ANSWER A lease that includes the payment of maintenance,janitorial, landscaping, security, or other services. The following are ways leases can be terminated: - CORRECT ANSWER - Full performance
- End of lease term
- Mutual cancellation
- Condemnation (eminent domain) of property
- Failure to pay or maintain Leasing and subleasing are permitted however when a lease is assigned what are the liabilities? - CORRECT ANSWER Assignor, is primarily liable Assignee, is secondarily liable When a leased property is sold, the lease travels with the property and must be honored by - CORRECT ANSWER The new owner NC provision exists when a tenant who is a sole occupant dies, the landlord may file an affidavitof possession with a proof of a death certificate and regain possession to the premises. The landlord must retain possession to the premises for how many days? - CORRECT ANSWER 90Days What is a landlord? - CORRECT ANSWER - Lessor of property
- Property manager
- Owner
- Agents who have apparent authority
days of the hearing. A landlord must hold the personal property of a tenant for.. - CORRECT ANSWER 7 days if theproperty is worth over $500, and 5 days if it is valued under $500. A tenant has a month defense to an eviction when they have asserted a legal right. - CORRECT ANSWER 12 month tenant may terminate lease early if they have a - CORRECT ANSWER court order of protection,or restraining order, and must give 30 days notice to landlord Members of the military may terminate a lease with 30 days notice due to the following - CORRECT ANSWER - Station changes order 50 miles
- away involuntary or premature
- Discharged, deployed for 90 days or more death on active duty All tenant security deposits must be deposited in a - CORRECT ANSWER Trust account,although a private owner who is not a licensee may obtain a bond. The maximum amount that can be collected as a security deposit; - CORRECT ANSWERdepends on the length of the lease For leases of a weekly term, the maximum deposit is - CORRECT ANSWER 2 weeks worth ofrent For leases of a monthly term, the maximum deposit is - CORRECT ANSWER 1 1/2 months
For leases longer than a month, the maximum deposit is - CORRECT ANSWER 2 months All trust accounts must meet the following requirements regarding the bank: - CORRECTANSWER - Legally doing business in NC
- Designated trust or escrow
- Be a demand account Pet deposits can never be charged for - CORRECT ANSWER assistive/service animal All security deposits must be deposited within: - CORRECT ANSWER 3 banking days Deductions must be itemized and returned within - CORRECT ANSWER 30 days or the tenantis entitled to treble damages Only the following may be deducted from security deposits - CORRECT ANSWER - Non-payment of rent
- Damages caused negligently or intentionally
- Unfulfilled lease term
- Unpaid bills
- Costs associated with eviction The max amount that can be collected as a late fee on rent is - CORRECT ANSWER 5% or $15whichever is greater Landlords are permitted to charge a complaint filing fee in the amount of - CORRECT ANSWER 5% or $15 whichever is greater Landlords are permitted to charge a court appearance fee in the amount of - CORRECTANSWER 10% of rent
