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REAL ESTATE EXAM - STATE PORTION – NC
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False - to pool listings ✔✔The purpose of the MLS is to set fees for real estate services False - NC brokers may work with out of state brokers as long as said brokers do not set foot in NC. ✔✔An out-of-state broker has asked a NC broker to assist her in the sale of a NC property. NC brokers are NOT allowed to assist in this type of the transaction. True ✔✔A buyer's broker may charge a client a nonrefundable retainer fee under NCREC rules False - the representation agreements belong to the current firm ✔✔When an agent leaves a firm to go to work for another, she can take all her listings and buyer clients to the new firm False - A consumer cannot be a customer and a client in the same transaction ✔✔A consumer can be represented as a client and treated as a third-party customer in the same transaction False - must be reduced to writing before an offer is presented ✔✔Under NC real estate law, the only expressed oral agency allowed is nonexclusive buyer agency, which must be reduced to writing before closing. False - an agent may not attempt to bind a buyer client under a non exclusive oral agreement ✔✔An agent has an oral buyer's agency with a buyer and has told the buyer that once a property is found, the agent must write the offer for the buyer. Under NC law, this practice is acceptable. False - Dual agency applies only if the interests of the parties are in conflict (broker working with buyer and seller in same transaction) ✔✔A broker is working with both a buyer and a seller on a different transaction. In this case, the broker is considered a dual agent.
False - a dual agent must maintain confidentiality between the seller and the buyer and may not share the info without express permission of the client ✔✔A seller tells the listing broker he will take $20k less for his home. The listing broker who is acting as a dual agent may pass this info on to the buyer True ✔✔An agent for an agent is called a subagent False - Undisclosed dual agency is always illegal ✔✔Under NC real estate law, undisclosed dual agency is acceptable if the broker discloses the relationship before closing. False. - all material facts must be disclosed to all parties of a transaction. ✔✔Brokers acting as dual agents do NOT need to disclose material facts. True ✔✔In dual agency, the agent is NOT an advocate for either party False - a broker who has confidential knowledge about another party in the transaction may not be designated to represent the other party. ✔✔A broker has confidential information regarding the buyer and is being designated as the seller's agent in the transaction. The broker does not need to disclose to the broker in charge her knowledge of the buyer's information. True ✔✔In a designated agency, only the agents representing the buyer and the seller are exclusive agents; the rest of the brokers int he firm remain dual agents True ✔✔Designated agency allows consumers to receive advocacy and representation from a single broker False - BICs cannot be designated opposite provisional brokers ✔✔A broker in charge may designate a provisional broker to be a sellers agent while the BIC is designated to represent the buyer True ✔✔When working with an unrepresented consumer, an agent owes that third party honesty, fairness and disclosure of material facts
True ✔✔All NC licensees must sign and add their license numbers to all agency agreements False - an agent can limit services but not duties ✔✔If a broker enters into a limited services contract, the broker can limit the agency duties False - an agent has a duty to verify if the information is reasonable ✔✔Agent's are NOT responsible for inaccurate information provided by a seller. True ✔✔A listing agent has a duty to do a reasonable inspection of the home being listed, looking for obvious defects True ✔✔Part of a listing agent's job is to clearly list items being included or excluded from the sale. False - must disclose all material facts ✔✔The seller has requested the listing agent to NOT disclose material ifnormation. Under the duty of obedience, the agent would NOT tell True ✔✔The NCREC has accepted the "Residential Sq Footage Guidelines" as the guidelines for accurately measuring residential improvements in NC False - measurements must be verified. ✔✔The sellers supplied the listing broker with the blueprints of their home; the agent may use this information instead of measuring the property. False - 7 ft minimum; 8 ft is standard ✔✔To be included in heated living area, ceiling height must be at least 8 ft. False - count stairs on both floors ✔✔When measuring interior stairs, only measure those on the first floor. False - measure outside ✔✔The appropriate way to measure a home is to measure the inside walls and add them together. False - the agent is liable. ✔✔If a broker does NOT personally measure, he will NOT be liable for accuracy. There are a total of 9 members on the NC Real Estate Commission ✔✔True
All 9 members serve a 3 year term ✔✔True All commissioners except 2 must have some active relationship to the real estate business.. Two members can have no active relationship to real estate ✔✔True The NCREC is a government dept but is self-funded by fees paid for renewals, application fees, & other fee paid by licensees ✔✔True The purpose of the NCREC is to protect the public. ✔✔True The NCREC has no power to put a licensee in jail. Only courts have this power. ✔✔True The NC court system can prosecute you for violation of G.S.93A. ✔✔True The NCREC has the power to revoke a real estate license only not the court system. ✔✔True The NCREC can not give licensees advice on the validity of a contract. The NCREC does not practice law ✔✔True The NCREC will NOT help a broker determine what fees to set ✔✔True The NCREC may investigate anyone on its own motion. ✔✔True
True ✔✔It is never acceptable to give a check that will be dishonored to the NCREC False - must be 18 years old; no diploma required ✔✔You must be 21 years old, have a HS diploma or equivalent to obtain a NC real estate license False - NC residency is not required ✔✔You must be a US citizen & a resident of NC to obtain a NC real estate license False - managing property for others for compensation requires a real estate license ✔✔A property manager who receives compensation for managing property does NOT need a real estate license True ✔✔Someone acting in a fiduciary position such as an executor in a will or a trustee in a deed of trust does NOT need a license to buy or sell real estate while acting in that capacity True ✔✔A mere crier at a real estate auction does NOT need a real estate license False - must have a license ✔✔A lawyer wants to open a real estate office and start listing and selling real estate. Because he has an attorney's license, he will NOT need a real estate license False - must have a firm license ✔✔An LLC created for the purpose of selling real estate does not need a real estate license True ✔✔A business broker selling business interests without any real estate does NOT need a real estate license True ✔✔A W-2 employee of a corporation who owns rental properties or builds new construction homes does NOT need a real estate license to sell or manage properties owned by the corporation False - showing homes to a potential buyer requires a licensee who is current and active ✔✔A licensed real estate assistant, whose license is inactive, can show properties to a potential buyer.
True - referrals are considered brokerage activity, which requires active license ✔✔An active real estate license is required to receive compensation for real estate referrals False - a broker license is required to advertise and conduct an auction of real estate ✔✔A real estate license is NOT required to advertise and conduct an auction of real estate False - Applicants must reside in a state other than NC ✔✔A resident of NC may apply for a Limited Nonresident Commercial Broker License if a BIC will agree to supervise the transaction. False - would be issued a provisional brokers license ✔✔After satisfying the 75 hour pre- licensing course requirement and passing the state license exam, an applicant who passes the background check and has no character issues would be issued a full broker license False - the license will not be cancelled; it would become inactive ✔✔Provisional brokers must attend three 30 - hour post licensing courses within 3 years of initial licensing or their license will be cancelled. True ✔✔Any of the three 30 hour courses may be taken any time after licensure and in any order, but only 21 hours may be taken in any 7 day period True ✔✔Once all 30-hour courses have been satisfactorily completed, provisional status is removed and the licensee becomes a full broker False - must have BIC supervision ✔✔A provisional broker does not required supervision by a broker in charge F - a provisional broker may only receive compensation directly from BIC ✔✔A provisional broker may receive a bonus directly from a seller if he has his supervising broker's permission False - provisional brokers must immediately submit all funds belonging to others to their supervising broker ✔✔Provisional brokers are allowed to hold earnest money for buyers True - as long as company policy and employment contracts permit ✔✔Non provisional brokers may accept compensation from someone other than their affiliated broker in charge True ✔✔In order to declare oneself a broker in charge, the licensee must be a non provisional broker on active
False - each office must have a separate BIC ✔✔A company has one main office and two satellite offices. Under NCREC rules, one BIC can manage all three offices False - may apply for a limited nonresident commercial license ✔✔In order to legally broker a commercial real estate transaction in NC, an actively licensed out of state real estate broker must apply for a NC real estate license by successfully completing the entire licensing process False - must be supervised by an active NC broker, who must retain all records ✔✔An out of state broker with a limited nonresident commercial license does NOT have to be supervised False - an entity needs a firm license before undertaking any real estate business for others ✔✔Corporations, LLCs and other entities acting as a brokerage firms do NOT need a separate firm license, only a designated broker in charge. True ✔✔A sole proprietorship does NOT need a firm license True ✔✔Any sole proprietorship conducting real estate business under a trade name must register that name in every county the company is doing business and send a copy of the registration to the NCREC False - must have exam eligibility certificate ✔✔Anyone can register to take the state real estate license exam anytime True ✔✔Issues of character will NOT be addressed by the NCREC until after the applicant has passed the state exam True ✔✔When attending any required real estate education, licensees must produce their pocket card in order to gain entrance False - only the firm license must be displayed; BIC license must be produced upon request ✔✔All licensees in the brokerage firm must display their individual licenses in a prominent place in the office
False - the renewal year runs July 1 - June 30 ✔✔The real estate license renewal year runs from July 1 - June 10 False - Active provisional brokers must only pay their renewal fee and complete at least one of the post licensing courses by the first renewal, CE courses are required for second renewal ✔✔A licensee on provisional status has to attain 8 hours of continuing education before renewing their license the first time. False - the mandatory update course is 4 hours; another 4 hour elective is also required ✔✔All brokers other than a broker in charge must complete an 8 hour mandatory update course each year True ✔✔All licensees must complete all required continuing education by June 10 to remain on active status False - to remain CURRENT - if renewal fee is not paid by June 30, the license EXPIRES ✔✔To remain active, licenses must be renewed by June 30 each year False - to remain ACTIVE - if CE is not completed by June 10, the license becomes INACTIVE ✔✔To keep a real estate license on current status all licensees must CE before June 10 each year False - EXPIRED status ✔✔A licensee who fails to renew her license on time will have the license put on inactive status True ✔✔A licensee who fails to complete required CE by June 10 will have his license placed on inactive status False - Inactive licenses must be renewed but do not required CE ✔✔Licenses placed on inactive status do NOT require annual renewal fee payments True ✔✔In order to earn commission, a broker must be currently active False - 16 hours of CE would be required ✔✔If a full broker license has been on inactive status for 5 years and no CE was taken during that time, the licensee will be required to complete 90 hours of education to reactivate
units and fill in the blanks on a pre-printed lease False - must have a license to offer advice or professional opinions ✔✔An unlicensed assistant can offer advice and opinions about real estate to buyers True ✔✔Provisional brokers may retain the provisional status indefinitely on inactive status as long as renewal requirements are met each year False - 8 hours of CE is required after first renewal in addition to 90 hour post license courses ✔✔Provisional brokers are NOT required to complete CE until the 90 hour post licensing requirement has been met True ✔✔To earn compensation, a broker in NC must have an active license False - non-exclusive buyer agency may be oral at start ✔✔Expressed or oral agency is never acceptable under the NCREC rules False - fee is earned when ready willing and able buyer is obtained. Fee is paid after closing ✔✔To earn commission for listing a seller's home, the home must be sold and closed before the firm has earned the fee. False - Once seller agrees to terms and signs contract, they are obligated to perform as agreed. ✔✔The seller of a listed property wants to change some of the terms of the listing agreement. Because the listing is considered and employment agreement, the brokerage firm must allow these changes. True ✔✔A seller enters into a contract to sell but cannot close due to a defect in the title: the listing agent is still due compensation False - Once the firm found a ready, willing & able buyer, the firm has earned the commission
✔✔A "ready, willing & able" buyer changes his mind about buying a seller's home. The listing firm is NOT due a commission now. True ✔✔A main purpose of multiple listing services is that is allows members to pool their listings and offer cooperation and compensation to other members for procuring ready, willing & able buyers False - Violates antitrust laws; price fixing is a felony ✔✔Several brokers in a depressed market area work together to establish a set commission rate for all firms to charge. Due to the slow sales, this is allowed True - boycotting ✔✔A group of brokers agree to NOT show a discount broker's listings. This is a violation of antitrust law. False - The broker would be obligated to explain that by signing 2 listings, the seller could be liable for 2 commissions. Suggesting terminating first listing contract could be considered "tortuous interference of a contract". ✔✔A seller has contacted a broker about listing her home. The seller tells the broker the property is currently listed with another firm. It would be acceptable for the broker to have the seller sign a new listing and recommend the seller to fire the other firm.
