License and Law Quiz

A non provisional broker worked full time with NC buyers and sellers for 2 years before taking a 2 year break to serve abroad. The broker returns to NC and would like to be designated as broker in charge. What must the broker do?

Submit the BIC designation form to the NCREC and complete the 12 hour broker in charge course within 120 days of submitting the form.

What license status in other states is most comparable to a NC provisional broker status?

Salesperson

What affiliated brokers does a NC real estate firm have liability for?

BIC eligible brokers, provisional and non provisional brokers

What must a NC resident who wishes to auction off 35 acres of land in Granville county. The resident does not personally own the land and plans to earn compensation for the transaction do?

Have a NC auctioneers license and NC brokers license

What is a NC residents initial license if she passed her licensing exam on January 5, 2022 and receives her license from the NCREC several days later?

Inactive provisional broker

What must a limited non resident commercial broker must do?

Have an active broker or salesperson license in the state where their primary place of RE business is located

What must a NC resident who wishes to receive a referral fee for a real estate transaction in NC must have?

An active NC broker license

What must a Georgia resident who would like to receive a referral fee for referring a client to a Raleigh area broker do?

Have an active Gergoia Real Estate Brokers License

What must you have in order to sell new homes built by a NC corporate entity?

An active NC real estate brokers license and be a salaried employee of that corporate entity

Material facts about a property such as a malfunctioning heat pump must be?

Disclosed to all interested parties

A NC buyers agent is aware that a person was recently arrested for commiting a violent crime in the property that his buyer client is interested in buying. The buyers agent…

May disclose this information to his client

A NC broker is representing a seller when they are approached by an unrepresented buyer. The unrepresented buyer informs the sellers agent that “if you make sure my offer is accepted, I will gladly use you as my buyers agent for my next property purchase in 90 days.” The sellers agent encourages the seller to accept the buyers offer without disclosing this apparent conflict of interest. What is the sellers agent guilty of?

Self dealing

What may a NC broker do?

Provide and assist in the preparation of the Residential Property Owners Association Disclosure Statement

True or false: Unlicensed property owners may compensate an unlicensed person to collect rent on their behalf, as long as they do not negotiate

True

What will not happen to a NC real estate broker who recommended an inappropriate sales price to their client, for the purpose of enabling a personal friend of the broker to purchase the property at a discounted price ?

Mandatory reimbursement of any finical losses as required by the NCREC

What are NC brokers required to complete?

The 12 hour BIC course after 2 years of full time real estate experience

True or false: A BIC may not be designated opposite a non provisional broker who is affiliated with the BIC

False

Oral nonexclusive buyer agency must?

Have a verbal agreement regarding important terms of buyer agency such as compensation and dual agency

True or false: The WWREA is required at first substantial contact when working with a seller of vacant land

True

What must a valid NC property management agreement include?

A non discrimination clause

What must all NC provisional brokers do?

Complete 8 hours of CE prior to their second license renewal to remain active

Non provisional broker Steven has been contacted by a buyer who wishes to make an offer on a property, which is listed by Angela, who serves as the BIC of Stevens office. Broker Steven reviews the WWREA and has the buyer sign an exclusive buyer agency agreement. What happens now?

Steven and Angela may continue as designated dual agents with the informed written consent of both parties

Broker Susan was hosting an open hoosue today when she met James, who is relocating to the area within 30 days. Susan reviewed the WWREA disclosure with James and discussed a variety of agency options including dual agency and seller subagency. What happens now?

James may now make an informed decision regarding agency representation

The closing disclosure cannot be provided to who

both parties directly by the lender

Bobby, a listing agent with ABC realty is meeting with a new seller client, during the walkthrough of the sellers property Bobby notices what appears to be watermarks on the basement walls approximately 8 inches off the floor. Bobby asks the seller about the watermarks to avoid any possible confusion. The seller also choses no representation regarding any flooding issues on their property disclosure form. Broker Bobby forgets about the watermarks and moves forward with listing the property. 6 months later the new owner of the property reports nearly a foot of water in the basement due to a tropical storm. What could happen?

Broker may be liable for negligent omission for failing to disclose the existence of watermarks as a material fact.

Legal timeshare ownership example:

Shared ownership at a resot that allows you to visit at least 5 weeks over the next 10 years

True or false: Landlords can use the deposit to pay for damages created by a tenants service animal

False

A NC non provisional broker receives a personal check from their buyer client for a $5,000 EMD while filling out Standard Form 2-T, OTP, and preparing to present his clients offer. Regarding the EMD, what must the broker do?

Deposit the $5,000 into the firms trust account within 3 banking days following contract formation

An agent lists a parcel of undeveloped property which is zoned for single family residential use. The agent knows that this property is about to be rezoned for multi family residential use, which will greatly increase the property’s value. Rather than informing the seller of this fact, the agent offers to buy the property at the listed price, telling the seller that he wants to acquire the property as a long term investment. The deal closes. Several months later, after the rezoning has been accomplished, the agent sells the property at a substantial profit. This is an example of what?

Self dealing

On Friday afternoon broker Micheal enters into a contract to purchase a condo in the mountains that was originally constructed in 1994. The individual seller did not use a real estate agent and selected “no representation” on every item of the property disclosure form. The contract stipulates a 10 day DD period. On Sunday afternoon Micheal meets anothr owner from the same condo community and discovers that the condo owners asscoation has signifianct debt issues and is currently involvd in serveal lawsuits. Broker Micheal deciceds to terminate his purchase agree,emt. What happens now?

Forfeit any DD fees paid, but be entitled to a refund of any EMD once he notifies the seller of his decision to terminate in writing

True or false: Brokers are required to have $100 of their own money in the account to avoid commingling trust and personal funds

False

The unlicensed data entry coordinator at a NCRE firm inadvertently types 3800 heated square footage while inputting a listing on behalf of her BIC. The discrepancy goes unnoticed until the property is later under contract. What is possible?

The BIC would be liable for a negligent misrepresentation with the NCREC

Broker Tim is showing property to his buyer client with an exclusive buyer agency agreement in place. They look at 7 properties over the course of a weekend; unfortunately none of the properties are suitable to his buyer clients specific needs. On the way back to the office they notice a for sale by owner property that is 1 story and conveniently, located near the buyer clients workplace The buyer client would like to view the home as soon as possible. What shoild broker Tim do?

Contact the seller to schedule a showing appointment for his buyer client

A home owner in Winston Salem recently added a permanent heat source to his detached 900 square foot rehearsal space, located at the back of his 3 acre property. The rehearsal space is fitted with vinyl plank flooring, drywall ceilings and walls. Can the rehearsal space be included in the heated square footage of his home?

No

True or false: After completing a CMA by a NC provisional broker for their seller client, the PB can recommend a probable sales price for their seller client based on the CMA

True

True or false: A for sale by owner may decide to sell his property exclusively without young children as long as no broker is involved with the transaction

False

True or false: A broker prepared CMA may help a landlord determine a probable leasing price for their property

True

Broker Susan is assisting a commercial buyer client who is interested in purchasing a shopping center in the Greensboro area. After several weeks of investigating properties, the prospective buyer enters into an option to purchase contract, and gives Susan a personal check for an option fee of $10,000. What must Susan do?

Safeguard the $10,000 fee until she can transfer it to the optionors possession

A NCRE firm requires their buyer client to to pay a $500 retainer fee at the time the NCAR exclusive buyer agency agreement is signed. True or false: Retainer fees are non refundable per the NCAR exclusive buyer agency agreement

True

A NC buyer goes under contract to purchase a home in Avery County; the buyer pays $5,000 as a DD fee and $10,000 as their EMD. The deposit is held in the trust account of a local real estate attorney. At exactly 4:59pm on the DD expiration date, the buyer notifies the seller in writing that they are terminating their OTP contract. Due to the last minute change of plans, the seller is unwilling to sign a written disbursement plan for the buyers deposit. What is the legal outcome?

The attorney will need to retain the depoist until ordered to disburse the funds by a court order, or turn the funds over to the county clerk of court