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Questions and Answers
Which of the following options is considered a brokerage activity for which North Carolina resident Greg must hold a license when he performs that activity on behalf of another person?
Which of the following options is considered a brokerage activity for which North Carolina resident Greg must hold a license when he performs that activity on behalf of another person?
- Providing home staging
- Conducting open houses
- Negotiating the sale of real estate (correct)
- Implementing marketing plans
Which of the following describes a type of ad that is prohibited in North Carolina?
Which of the following describes a type of ad that is prohibited in North Carolina?
- Sponsored ad
- Promotional ad
- Digital ad
- Blind ad (correct)
If Bethany chose to draft her own legal instrument as a broker in North Carolina, what would she be engaged in?
If Bethany chose to draft her own legal instrument as a broker in North Carolina, what would she be engaged in?
The unauthorized practice of law
Which one of the following individuals can legally prepare a for-fee CMA in North Carolina?
Which one of the following individuals can legally prepare a for-fee CMA in North Carolina?
At what point will Olivia's license be considered active after filing a request for activation?
At what point will Olivia's license be considered active after filing a request for activation?
Maria is an unlicensed personal assistant at ABC Brokerage. She may _______.
Maria is an unlicensed personal assistant at ABC Brokerage. She may _______.
What purpose does the license law provision that prohibits violating any rule serve?
What purpose does the license law provision that prohibits violating any rule serve?
How much can Derrick legally receive from his cousin for his assistance in the real estate transaction?
How much can Derrick legally receive from his cousin for his assistance in the real estate transaction?
How many members make up the North Carolina Real Estate Commission?
How many members make up the North Carolina Real Estate Commission?
What disciplinary action did Mike face as a North Carolina real estate broker?
What disciplinary action did Mike face as a North Carolina real estate broker?
In North Carolina, sexual harassment in housing is considered a form of discrimination based on ______.
In North Carolina, sexual harassment in housing is considered a form of discrimination based on ______.
Which of the following is NOT an option under the Home Warranty provision in the North Carolina Offer to Purchase and Contract, Standard Form 2-T?
Which of the following is NOT an option under the Home Warranty provision in the North Carolina Offer to Purchase and Contract, Standard Form 2-T?
Along with providing proof of meeting requirements, which of the following courses must an applicant complete for broker-in-charge eligibility in North Carolina?
Along with providing proof of meeting requirements, which of the following courses must an applicant complete for broker-in-charge eligibility in North Carolina?
A North Carolina brokerage that represents only sellers is cooperating with a brokerage that represents only buyers. Which of the following statements is true about this situation?
A North Carolina brokerage that represents only sellers is cooperating with a brokerage that represents only buyers. Which of the following statements is true about this situation?
When can Frank expect his property to likely be reappraised next?
When can Frank expect his property to likely be reappraised next?
What should broker Brett do regarding the offer received on his property?
What should broker Brett do regarding the offer received on his property?
In North Carolina, whose responsibility is it to supervise the provisional licensees at a given branch office?
In North Carolina, whose responsibility is it to supervise the provisional licensees at a given branch office?
By when must Dennis complete his first required CE courses after receiving his initial real estate license in October?
By when must Dennis complete his first required CE courses after receiving his initial real estate license in October?
North Carolina licensee Todd can call numbers on the national Do Not Call Registry.
North Carolina licensee Todd can call numbers on the national Do Not Call Registry.
An expedited eviction proceeding applies to which type of property in North Carolina?
An expedited eviction proceeding applies to which type of property in North Carolina?
In North Carolina, when a joint tenant dies, what happens to the decedent's estate?
In North Carolina, when a joint tenant dies, what happens to the decedent's estate?
In North Carolina, who is responsible for retaining real estate records?
In North Carolina, who is responsible for retaining real estate records?
How much should Jim plan on paying for the state excise tax on his North Carolina property?
How much should Jim plan on paying for the state excise tax on his North Carolina property?
A North Carolina broker-in-charge would be committing a license law violation if he were to deposit the commission check in a(n) ______ account.
A North Carolina broker-in-charge would be committing a license law violation if he were to deposit the commission check in a(n) ______ account.
What does it mean for Rory after his real estate license was suspended?
What does it mean for Rory after his real estate license was suspended?
What must Tara's agent, Jim, do next after Tara signed an offer for seller Javier's house?
What must Tara's agent, Jim, do next after Tara signed an offer for seller Javier's house?
Under the Federal Deposit Insurance Corporation (FDIC), how much is Angela's properly designated trust fund in North Carolina insured for?
Under the Federal Deposit Insurance Corporation (FDIC), how much is Angela's properly designated trust fund in North Carolina insured for?
Under what circumstances may broker Jules share the amount of an existing offer with another prospective buyer?
Under what circumstances may broker Jules share the amount of an existing offer with another prospective buyer?
How do you calculate the square footage of a living room that is 15 feet long and 18 feet wide?
How do you calculate the square footage of a living room that is 15 feet long and 18 feet wide?
In order for Pam to comply with NCREC regulations, what must be true about the financial institution where she opened her new trust account?
In order for Pam to comply with NCREC regulations, what must be true about the financial institution where she opened her new trust account?
Under the terms of the North Carolina Offer to Purchase and Contract, Standard Form 2-T, if the buyer fails to _______ before the due diligence period expires, this indicates that the buyer waives any right to terminate the contract based on anything related to the buyer's due diligence.
Under the terms of the North Carolina Offer to Purchase and Contract, Standard Form 2-T, if the buyer fails to _______ before the due diligence period expires, this indicates that the buyer waives any right to terminate the contract based on anything related to the buyer's due diligence.
In a residential transaction in North Carolina, who's responsible for verifying and accurately reporting any square footage in a client's property listing?
In a residential transaction in North Carolina, who's responsible for verifying and accurately reporting any square footage in a client's property listing?
At the latest, North Carolina broker Jennifer must give her seller client Gideon a copy of the listing agreement they signed ______.
At the latest, North Carolina broker Jennifer must give her seller client Gideon a copy of the listing agreement they signed ______.
Cory, a North Carolina licensee, is required to complete ______ hours of continuing education every year.
Cory, a North Carolina licensee, is required to complete ______ hours of continuing education every year.
What will make Marco eligible for broker-in-charge status?
What will make Marco eligible for broker-in-charge status?
Under which provision is the agreement to hold the seller harmless for any damage caused by buyer's contractors covered?
Under which provision is the agreement to hold the seller harmless for any damage caused by buyer's contractors covered?
The NCREC defines ______ as 'all moneys received by a broker acting in his or her fiduciary capacity.'
The NCREC defines ______ as 'all moneys received by a broker acting in his or her fiduciary capacity.'
How many days does a broker-in-charge have to notify NCREC after a licensee changes firms?
How many days does a broker-in-charge have to notify NCREC after a licensee changes firms?
Which of the following actions does NOT violate fair housing laws?
Which of the following actions does NOT violate fair housing laws?
Which of the following is true of the situation where Jennifer cannot be appointed as the designated agent for the buyer?
Which of the following is true of the situation where Jennifer cannot be appointed as the designated agent for the buyer?
When do the back-up contracts stop being in the secondary position?
When do the back-up contracts stop being in the secondary position?
Which of the following is a requirement for broker-in-charge eligibility in North Carolina?
Which of the following is a requirement for broker-in-charge eligibility in North Carolina?
North Carolina licensees must notify NCREC in writing of any name or address change within ______.
North Carolina licensees must notify NCREC in writing of any name or address change within ______.
Which agency in North Carolina enforces fair housing law?
Which agency in North Carolina enforces fair housing law?
For the purposes of disclosing the terms of his compensation for the transaction, which best describes the 'timely manner' in which George will need to provide said disclosure?
For the purposes of disclosing the terms of his compensation for the transaction, which best describes the 'timely manner' in which George will need to provide said disclosure?
Zoning powers are given to municipalities by North Carolina's Agricultural Development and Farmland Preservation Enabling Act.
Zoning powers are given to municipalities by North Carolina's Agricultural Development and Farmland Preservation Enabling Act.
Who should measure the square footage of a client's property in North Carolina?
Who should measure the square footage of a client's property in North Carolina?
What is the primary reason Shelley needs to have a license after helping her neighbor sell his home?
What is the primary reason Shelley needs to have a license after helping her neighbor sell his home?
Which of the following will be triggered by the transfer of Sherry's North Carolina home to Abigail?
Which of the following will be triggered by the transfer of Sherry's North Carolina home to Abigail?
Which of the following is a type of joint tenancy that's only available to married buyers in North Carolina?
Which of the following is a type of joint tenancy that's only available to married buyers in North Carolina?
What is Meg's responsibility after Eddie gave her a check for the option fee?
What is Meg's responsibility after Eddie gave her a check for the option fee?
Which of these is NOT a part of the total circumstances test?
Which of these is NOT a part of the total circumstances test?
What may Amelia do if Jeremy and Charlie cannot reach an agreement over escrow funds?
What may Amelia do if Jeremy and Charlie cannot reach an agreement over escrow funds?
What should North Carolina brokers be careful NOT to do when working with a closing statement?
What should North Carolina brokers be careful NOT to do when working with a closing statement?
Why wasn't Finn's ad permissible?
Why wasn't Finn's ad permissible?
A North Carolina licensee told a seller he had several buyers who would make an immediate offer, but no such buyers existed. This describes ______.
A North Carolina licensee told a seller he had several buyers who would make an immediate offer, but no such buyers existed. This describes ______.
For how long must North Carolina brokers retain records of all sales, rentals, and other transactions?
For how long must North Carolina brokers retain records of all sales, rentals, and other transactions?
Commingling and conversion are prohibited in North Carolina.
Commingling and conversion are prohibited in North Carolina.
Blind ads are prohibited in North Carolina.
Blind ads are prohibited in North Carolina.
What is an independent escrow agent required to do with the purchaser's payments?
What is an independent escrow agent required to do with the purchaser's payments?
Which of the following legal forms is NOT acceptable for a North Carolina licensee to fill in, even if it's pre-printed?
Which of the following legal forms is NOT acceptable for a North Carolina licensee to fill in, even if it's pre-printed?
In North Carolina, when two transaction principals are in a dispute over disposition of earnest money, which one of the following is NOT among the options that the broker has in handling the disputed funds?
In North Carolina, when two transaction principals are in a dispute over disposition of earnest money, which one of the following is NOT among the options that the broker has in handling the disputed funds?
How should Renee respond when Anthony asks her the amount of the highest offer she has received for the house?
How should Renee respond when Anthony asks her the amount of the highest offer she has received for the house?
How long do the documents related to Gilbert's first transaction need to be saved?
How long do the documents related to Gilbert's first transaction need to be saved?
In North Carolina, a CMA that's prepared by a real estate licensee can be used ______.
In North Carolina, a CMA that's prepared by a real estate licensee can be used ______.
Which one of the following licensees has an active North Carolina real estate license?
Which one of the following licensees has an active North Carolina real estate license?
How many days does Jerry's broker-in-charge have to get the trust funds deposited after receiving earnest money?
How many days does Jerry's broker-in-charge have to get the trust funds deposited after receiving earnest money?
Which of the following parties is eligible to act as the broker-in-charge of a firm in North Carolina, provided all other requirements are fulfilled?
Which of the following parties is eligible to act as the broker-in-charge of a firm in North Carolina, provided all other requirements are fulfilled?
Lonnie's actions of not mentioning the actual square footage are a form of willful misrepresentation.
Lonnie's actions of not mentioning the actual square footage are a form of willful misrepresentation.
What is the primary purpose of the North Carolina Real Estate Commission?
What is the primary purpose of the North Carolina Real Estate Commission?
How long are ad valorem tax liens valid in North Carolina?
How long are ad valorem tax liens valid in North Carolina?
Which North Carolina state law requires most types of real estate documents to be recorded?
Which North Carolina state law requires most types of real estate documents to be recorded?
Is the contract legally binding once a broker provides a copy of the written, signed contract to the buyer?
Is the contract legally binding once a broker provides a copy of the written, signed contract to the buyer?
Which of the following is true regarding Harrison's role in the dual agency?
Which of the following is true regarding Harrison's role in the dual agency?
North Carolina licensees owe the duty of honesty to ______.
North Carolina licensees owe the duty of honesty to ______.
In North Carolina, the legal test the courts apply to determine whether an item is a fixture or personal property is the ______.
In North Carolina, the legal test the courts apply to determine whether an item is a fixture or personal property is the ______.
What is a required step for North Carolina time share developer Condo Sales to renew its certificate of registration?
What is a required step for North Carolina time share developer Condo Sales to renew its certificate of registration?
Robyn is following NC retention requirements by retaining her original documents for three years post-transaction.
Robyn is following NC retention requirements by retaining her original documents for three years post-transaction.
From whom may Josh accept compensation as a provisional broker in North Carolina?
From whom may Josh accept compensation as a provisional broker in North Carolina?
According to statute, what is the deadline by which Virgil must send Lindsay a summary of information related to the rental agreements?
According to statute, what is the deadline by which Virgil must send Lindsay a summary of information related to the rental agreements?
Where are laws that provide subdivision development regulations found in North Carolina?
Where are laws that provide subdivision development regulations found in North Carolina?
How are changes typically made to an offer to create a counter-offer in North Carolina?
How are changes typically made to an offer to create a counter-offer in North Carolina?
Which of the following documents in North Carolina does NOT create a binding contract once the agent and client have signed it?
Which of the following documents in North Carolina does NOT create a binding contract once the agent and client have signed it?
If Ted had permission to share the amount of the highest offer he had, his actions would be legal.
If Ted had permission to share the amount of the highest offer he had, his actions would be legal.
In North Carolina, which of the following must be included in all advertisements a broker creates?
In North Carolina, which of the following must be included in all advertisements a broker creates?
How long after Ernesto gave Bertrand his earnest money check must the check be deposited?
How long after Ernesto gave Bertrand his earnest money check must the check be deposited?
Generally speaking, all North Carolina brokers have a responsibility to _____ trust funds.
Generally speaking, all North Carolina brokers have a responsibility to _____ trust funds.
A North Carolina licensee who tells a consumer that the market value of the property is higher than it actually is is subject to discipline from NCREC for license law violation.
A North Carolina licensee who tells a consumer that the market value of the property is higher than it actually is is subject to discipline from NCREC for license law violation.
What action should you take if your buyer client is concerned about the septic system's condition?
What action should you take if your buyer client is concerned about the septic system's condition?
What should Greta do to assist Bill with his specific requests for an offer to purchase?
What should Greta do to assist Bill with his specific requests for an offer to purchase?
Where should North Carolina broker Elizabeth deposit an earnest money check from a buyer client?
Where should North Carolina broker Elizabeth deposit an earnest money check from a buyer client?
What must broker Elena have before putting a for sale sign up in the yard of her new listing?
What must broker Elena have before putting a for sale sign up in the yard of her new listing?
Which of the following is an example of license surrender in North Carolina?
Which of the following is an example of license surrender in North Carolina?
Which type of deed offers the greatest protection for the grantee because it typically contains all six covenants?
Which type of deed offers the greatest protection for the grantee because it typically contains all six covenants?
Incompetence is a disciplinable offense in North Carolina because an incompetent licensee can endanger the public's interest.
Incompetence is a disciplinable offense in North Carolina because an incompetent licensee can endanger the public's interest.
North Carolina's waterway zoning standards apply mostly to _______.
North Carolina's waterway zoning standards apply mostly to _______.
What can happen to a North Carolina licensee who is found guilty of improper, fraudulent, or dishonest dealing?
What can happen to a North Carolina licensee who is found guilty of improper, fraudulent, or dishonest dealing?
How many brokers can supervise a North Carolina provisional broker, unless the provisional broker is a member of a team entity?
How many brokers can supervise a North Carolina provisional broker, unless the provisional broker is a member of a team entity?
In North Carolina, when a business entity gets a firm's license to engage in brokerage activities, it must also have _____ to maintain its license.
In North Carolina, when a business entity gets a firm's license to engage in brokerage activities, it must also have _____ to maintain its license.
Under what circumstance would broker Thomas be permitted to accept compensation offered by a party other than his client?
Under what circumstance would broker Thomas be permitted to accept compensation offered by a party other than his client?
Study Notes
Termination Notice
- Delivering a termination notice to the seller is essential if the buyer fails to act before the due diligence period ends.
- By not acting, the buyer waives the right to terminate the contract related to due diligence.
Licensee Responsibilities
- Licensees are responsible for measuring and reporting square footage accurately in property listings.
- The broker must provide a copy of the listing agreement to the seller within three days of signing.
Continuing Education Requirements
- North Carolina licensees must complete eight hours of continuing education annually.
- Eligibility for broker-in-charge status requires passing a 12-hour broker-in-charge course.
Indemnity Agreement
- Buyers may agree to indemnify sellers for damages caused during property inspections, as covered in the Standard Form 2-T.
Trust Money
- Trust money includes all funds received by a broker in a fiduciary role, emphasizing the importance of proper handling.
Notification Requirements
- Brokers-in-charge must notify NCREC of any licensee firm changes within ten days.
- Licensees must report name or address changes to NCREC in writing within ten days.
Fair Housing Law Enforcement
- The North Carolina Human Relations Commission (NCHRC) is tasked with enforcing fair housing laws.
Disclosure Responsibilities
- Disclosure of compensation terms must be made in a timely manner that allows reasonable decision-making by the seller.
Zoning Powers
- Municipalities derive zoning powers from the Agricultural Development and Farmland Preservation Enabling Act.
Square Footage Accuracy
- Measuring a client's property square footage is the responsibility of the licensee.
Licensing Requirements
- Individuals who facilitate property transactions must possess a license to avoid legal issues regarding payment for services.
Escrow Fund Disputes
- In the event of escrow fund disputes, brokers may turn funds over to the superior court in the relevant county.
Legal Advice Limitations
- Brokers should refrain from providing legal advice when handling closing statements.
Advertising Rules
- All advertisements by brokers must clearly indicate the brokerage firm's name, using blind ads is prohibited.
Misrepresentation Consequences
- Licensees making false promises or willfully misrepresenting property details may face disciplinary actions.
Record Retention
- Brokers must retain transaction records for three years to comply with legal requirements.
Trust Fund Safeguards
- Brokers have a legal obligation to safeguard entrusted funds, reflecting fiduciary responsibilities.
Offer Acceptance
- Contracts become legally binding only after the offer is accepted in writing and communicated to the buyer.
Designated Agency Rules
- In dual agency situations, designated agents must have no conflicting interests to avoid ethical violations.
Fixture Determination
- The courts apply the total circumstances test to distinguish between fixtures and personal property.
Time-Share Registration
- A renewal fee of $800 is necessary for time-share registration, alongside compliance with state regulations.
Filing for License Activation
- License activation occurs once the request is submitted to the commission and not on its approval date.
Unlicensed Assistance Restrictions
- Unlicensed personal assistants can perform specific tasks under a licensed broker’s supervision without breaching legal boundaries.
Handling Compensation
- Licensees may accept compensation from parties other than their clients only with full disclosure and legal compliance.
Attorney Consultation
- Agents should advise clients to seek legal counsel when specific contractual requests exceed standard forms.### North Carolina Real Estate Commission and Regulations
- The North Carolina Real Estate Commission is made up of nine members.
- Mike, a North Carolina real estate broker, was disciplined by NCREC after he pleaded guilty to a misdemeanor, indicating he can't protect consumer interests.
- Sexual harassment in housing in North Carolina is classified as discrimination based on sex.
Real Estate Contracts and Transactions
- In the North Carolina Offer to Purchase and Contract, Standard Form 2-T, there exists a transaction type that does not qualify for a home warranty.
- An applicant for broker-in-charge must complete a 12-hour broker-in-charge course in addition to providing proof of active licensure.
- A brokerage representing only sellers can cooperate with a brokerage representing only buyers; the broker who finds the buyer can be either the buyer's agent or the seller's sub-agent.
Property Appraisal and Sales
- Following a reappraisal in 2019, North Carolina resident Frank can expect his property to be reappraised next in 2027.
- North Carolina seller Brett should be advised to counter the offer only on the price when responding to a lower-than-expected purchase offer.
Supervision and Continuing Education
- In North Carolina, the broker-in-charge is responsible for supervising provisional licensees at a branch office.
- Licensee Dennis who received his initial real estate license in October must complete his first required continuing education courses by June 10 of the second full year post-issuance.
Regulations for Real Estate Practices
- Licensee Todd is prohibited from calling numbers on the national Do Not Call Registry during his advertising campaign.
- Expedited eviction proceedings apply specifically to vacation rental properties in North Carolina.
Estate and Record Management
- Upon the death of a joint tenant in North Carolina, the decedent's estate passes to the decedent's heirs.
- Both the broker and broker-in-charge are responsible for retaining real estate records in North Carolina.
Financial Regulations in Real Estate
- For state excise tax in North Carolina, the amount due is $1 for every $500 of the property's value.
- A broker would violate license laws if they deposit a commission check into a trust account that is not aligned with regulatory guidelines.
- Rory's real estate license is suspended temporarily; he cannot practice real estate during this suspension.
Offer Management in Real Estate Transactions
- After signing an offer, Tara's agent, Jim, must deliver copies of the offer to the seller, Javier.
- A trust fund held by a broker-in-charge is insured by the FDIC for up to $250,000 per each of the five clients in that account.
Offer Sharing and Calculations
- A broker in North Carolina may share the amount of an existing offer with another buyer only if the person who submitted the offer gives express permission.
- To calculate the square footage of a living room measuring 15 feet by 18 feet, one should multiply the length by the width.
- A new trust account opened by a broker in North Carolina must be with a federally insured depository institution.
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