NC Real Estate Exam- State Portion

Activities Requiring a License

Persons AND business entities, who for CONSIDERATION or the promise thereof perform BROKERAGE ACTIVITIES as an agent FOR OTHERS are considered to be performing brokerage activities and must have a license.

Referrals for compensation

Requires an active license

Selling time shares

Requires an active license

Advertising

In ANY manner (to include a business card), requires an active license

Business Entities/Firm License

ANY corporation, partnership, Limited Liability Company, association or other business entity (other than a sole proprietorship) MUST obtain a separate (firm) license.

Exempt Activities

-Business entity

-Attorney in Fact

-Attorney at Law

-Receiver/Trustee

-Salaried Employees of Broker-Property Managers

-Owner

-Housing Authority

-Auctioneer (the mere "crier" of a sale is exempt

Permitted Activities of Unlicensed Assistants

-SHOW "rental" properties managed by the employee's empoying broker to prospective tenants

-COMPLETE and execute pre-printed form leases for rental of such properties

-TYPE offers, contracts & leases from drafts of pre-printed forms completed by a licensee.

-MAY act as a bookkeeper for the firm's Trust Account

What kind of license do I need?

There is only one "type" of license in NC, a broker license; however, there are several license categories.

Broker

A provisional broker who satisfied all postlicense education requirements to terminate the provisional status of such license becomes a broker.

-May accept commissions from parties OTHER that the BIC

-May operate independently as a sole proprietor or under supervision of BIC

Provisional Broker

"Entry level" status category- a person who has met all license qualification requirements

-Issued in INACTIVE status and MUST be activated by BIC, may NOT operate independently

-Must be supervised by BIC when performing any act for which a real estate license is required

Limited Nonresident Commercial Broker

A broker residing in a state OTHER than NC who holds an active broker license in the state in where their primary place of real estate business is located

-Entitled to engage in transactions for compensation involving "commercial" real estate in NC

-MUST enter into a "declaration of affiliation" & a "brokerage compensation agreement" with a resident NC broker NOT on provisional status

-Visiting broker MUST be supervised by NC broker

Active License

The licensee holds a current (properly renewed) license AND has completed any required continuing ed as well as any required post licensing ed. A provisional broker must also have a BIC (whose license is current and active).

A real estate licensee obtains their real estate license in October. When will they first need 8 hours of continuing ed?

A. Within 90 days of their first anniversary date

B. When they renew their license the second time (second license renewal period)

C. When they renew their license the first time

D. Within 120 days of license activation

B- When they renew their license the second time (second license renewal period)

A NC provisional broker may advertise a property only if the broker:

A. personally listed the property

B. uses the employing broker's name or the firm name in the advertisement

C. personally pays for the advertisement

D. is an active member of the local real estate board

B- uses the employing broker's name or the firm name in the advertisement

Which of the following is NOT a material fact in NC?

A. A leak around the flashing of the chimney

B. A cracked heat exchange in the heating system

C. The imminent widening of the road in front of the property to 4 lanes

D. Polyethylene pipes that have never leaked

D. Polyethylene pipes that have never leaked

Which of the following situations is considered to be a material fact in NC?

A. Nearby land is being considered for a landfill

B. House is rumored to be haunted

C. Criminal activity occurred on the property

D. Convicted sex offender lives in the neighborhood

A- Nearby land is being considered for a landfill

A broker cannot legally collect commissions from both the seller and the buyer without:

A. notifying both parties of this fact verbally after the sale has closed

B. notifying both parties of this fact in writing after the sale has closed

C. having exclusive listing agreements signed by both the seller and the buyer

D. the prior knowledge and written consent of both the seller and the buyer

D. the prior knowledge and written consent of both the seller and the buyer

Which of the following is TRUE regarding North Carolina subdivisions?

A. The final subdivision plat must be recorded before closing on any lot

B. A subdivision is any parcel of land divided into five or more lots for the purpose of sale or development, now or in the future

C. No contract to purchase any lot is allowed until the final subdivision plat is recorded

D. Subdivision streets must be privately maintained by the developer until the last lot is sold to the public

A. The final subdivision plat must be recorded before closing on any lot

Whether subdivision streets are publicly or privately owned and maintained is

A. a required disclosure of the developer on any resale transactions

B. a material fact that must always be disclosed by a real estate broker

C. information that a broker must disclose only in new construction transactions

D. information that is not critical to a buying decision

B. a material fact that must always be disclosed by a real estate broker

Which of the following is an essential element of a valid NC deed?

A. a seal

B. recordation

C. the signature of the grantee

D. words of conveyence

D. words of conveyence

An unlicensed assistant working in a real estate office as part of her duties may:

A. help negotiate a sales contract

B. sign a listing agreement for a broker

C. show a rental property and negotiate a lease with a tenant

D. answer the telephone

D. answer the telephone

An agency agreement that requires the seller to pay the agent even when the seller finds the buyer himself is an:

A. Exclusive agency listing agreement

B. Exclusive Right to Sell listing agreement

C. Listing agreement in the MLS

D. Open listing agreement

B. Exclusive Right to Sell listing agreement

Oral buyer agency must be in writing prior to:

A. preparation of an offer

B. discussing an offer

C. presentation of an offer

D. acceptance of an offer

C. presentation of an offer