Untitled Quiz

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?

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?

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?

Beth, who has had a non-provisional license for six months Signup and view all the answers

At what point will Olivia's license be considered active after filing a request for activation?

Once the form has been mailed or delivered to the commission Signup and view all the answers

Maria is an unlicensed personal assistant at ABC Brokerage. She may _______.

place for-sale or for-rent signs and lockboxes on property at a licensee's direction Signup and view all the answers

What purpose does the license law provision that prohibits violating any rule serve?

It makes licensees responsible for following all rules and license laws, even when the rule or statute is new and/or isn't specifically mentioned as prohibited conduct. Signup and view all the answers

How much can Derrick legally receive from his cousin for his assistance in the real estate transaction?

Nothing Signup and view all the answers

How many members make up the North Carolina Real Estate Commission?

Nine Signup and view all the answers

What disciplinary action did Mike face as a North Carolina real estate broker?

He pleaded guilty to a misdemeanor that showed he's unable to protect the consumer's best interests when engaging in real estate. Signup and view all the answers

In North Carolina, sexual harassment in housing is considered a form of discrimination based on ______.

sex Signup and view all the answers

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?

This transaction doesn't qualify for the purchase of a home warranty Signup and view all the answers

Along with providing proof of meeting requirements, which of the following courses must an applicant complete for broker-in-charge eligibility in North Carolina?

The 12-hour broker-in-charge course Signup and view all the answers

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?

The broker who finds the buyer can be either the buyer's agent or the seller's sub-agent. Signup and view all the answers

When can Frank expect his property to likely be reappraised next?

2027 Signup and view all the answers

What should broker Brett do regarding the offer received on his property?

Counter the offer only on the price Signup and view all the answers

In North Carolina, whose responsibility is it to supervise the provisional licensees at a given branch office?

The broker-in-charge Signup and view all the answers

By when must Dennis complete his first required CE courses after receiving his initial real estate license in October?

June 10 of the second full year following original issuance Signup and view all the answers

North Carolina licensee Todd can call numbers on the national Do Not Call Registry.

False Signup and view all the answers

An expedited eviction proceeding applies to which type of property in North Carolina?

Vacation rental property Signup and view all the answers

In North Carolina, when a joint tenant dies, what happens to the decedent's estate?

The decedent's estate passes onto the decedent's heirs Signup and view all the answers

In North Carolina, who is responsible for retaining real estate records?

The broker and the broker-in-charge Signup and view all the answers

How much should Jim plan on paying for the state excise tax on his North Carolina property?

$1 for every $500 of the property's value Signup and view all the answers

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.

trust Signup and view all the answers

What does it mean for Rory after his real estate license was suspended?

He's not allowed to practice real estate during the term of the suspension, which is temporary. Signup and view all the answers

What must Tara's agent, Jim, do next after Tara signed an offer for seller Javier's house?

He must deliver copies of the offer to Tara and Javier. Signup and view all the answers

Under the Federal Deposit Insurance Corporation (FDIC), how much is Angela's properly designated trust fund in North Carolina insured for?

Up to $250,000 per each of the five individuals Signup and view all the answers

Under what circumstances may broker Jules share the amount of an existing offer with another prospective buyer?

The person who submitted the existing offer gives her express permission to do so. Signup and view all the answers

How do you calculate the square footage of a living room that is 15 feet long and 18 feet wide?

Multiply the length by the width. Signup and view all the answers

In order for Pam to comply with NCREC regulations, what must be true about the financial institution where she opened her new trust account?

It is a federally insured depository institution located in North Carolina. Signup and view all the answers

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.

deliver a termination notice to the seller Signup and view all the answers

In a residential transaction in North Carolina, who's responsible for verifying and accurately reporting any square footage in a client's property listing?

the licensee Signup and view all the answers

At the latest, North Carolina broker Jennifer must give her seller client Gideon a copy of the listing agreement they signed ______.

within three days of its execution Signup and view all the answers

Cory, a North Carolina licensee, is required to complete ______ hours of continuing education every year.

eight Signup and view all the answers

What will make Marco eligible for broker-in-charge status?

He must complete and pass the 12-hour broker-in-charge course Signup and view all the answers

Under which provision is the agreement to hold the seller harmless for any damage caused by buyer's contractors covered?

indemnity Signup and view all the answers

The NCREC defines ______ as 'all moneys received by a broker acting in his or her fiduciary capacity.'

trust money Signup and view all the answers

How many days does a broker-in-charge have to notify NCREC after a licensee changes firms?

10 days Signup and view all the answers

Which of the following actions does NOT violate fair housing laws?

Randy requires a credit check on all tenants. Signup and view all the answers

Which of the following is true of the situation where Jennifer cannot be appointed as the designated agent for the buyer?

Jennifer overheard the seller discussing a lower offer, compromising the dual agency. Signup and view all the answers

When do the back-up contracts stop being in the secondary position?

when the primary contract is terminated or performed Signup and view all the answers

Which of the following is a requirement for broker-in-charge eligibility in North Carolina?

hold an active broker's license Signup and view all the answers

North Carolina licensees must notify NCREC in writing of any name or address change within ______.

10 days Signup and view all the answers

Which agency in North Carolina enforces fair housing law?

NCHRC Signup and view all the answers

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?

within a timeframe that allows a reasonable person to make a decision based on the information Signup and view all the answers

Zoning powers are given to municipalities by North Carolina's Agricultural Development and Farmland Preservation Enabling Act.

True Signup and view all the answers

Who should measure the square footage of a client's property in North Carolina?

the licensee Signup and view all the answers

What is the primary reason Shelley needs to have a license after helping her neighbor sell his home?

to comply with licensing laws Signup and view all the answers

Which of the following will be triggered by the transfer of Sherry's North Carolina home to Abigail?

an excise tax Signup and view all the answers

Which of the following is a type of joint tenancy that's only available to married buyers in North Carolina?

Tenancy by the entirety Signup and view all the answers

What is Meg's responsibility after Eddie gave her a check for the option fee?

she must safeguard the check until she delivers it to Marilyn or the designated escrow agent within three business days of the contract's acceptance Signup and view all the answers

Which of these is NOT a part of the total circumstances test?

Agricultural use Signup and view all the answers

What may Amelia do if Jeremy and Charlie cannot reach an agreement over escrow funds?

turn the funds over to a clerk of the superior court in the county where the property is located Signup and view all the answers

What should North Carolina brokers be careful NOT to do when working with a closing statement?

provide legal advice Signup and view all the answers

Why wasn't Finn's ad permissible?

this ad doesn't indicate that it's the advertisement of a broker or brokerage firm Signup and view all the answers

A North Carolina licensee told a seller he had several buyers who would make an immediate offer, but no such buyers existed. This describes ______.

willful misrepresentation Signup and view all the answers

For how long must North Carolina brokers retain records of all sales, rentals, and other transactions?

three years Signup and view all the answers

Commingling and conversion are prohibited in North Carolina.

True Signup and view all the answers

Blind ads are prohibited in North Carolina.

True Signup and view all the answers

What is an independent escrow agent required to do with the purchaser's payments?

deposit and maintain them in an insured trust or escrow account in a federally insured depository institution or a North Carolina trust institution Signup and view all the answers

Which of the following legal forms is NOT acceptable for a North Carolina licensee to fill in, even if it's pre-printed?

Deed of trust Signup and view all the answers

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?

Hear both sides of the dispute and decide the final disposition of the funds Signup and view all the answers

How should Renee respond when Anthony asks her the amount of the highest offer she has received for the house?

Let me ask that buyer if I can share that with you. Signup and view all the answers

How long do the documents related to Gilbert's first transaction need to be saved?

three years Signup and view all the answers

In North Carolina, a CMA that's prepared by a real estate licensee can be used ______.

to determine an appropriate listing price range Signup and view all the answers

Which one of the following licensees has an active North Carolina real estate license?

A provisional broker associated with XYZ Realty Signup and view all the answers

How many days does Jerry's broker-in-charge have to get the trust funds deposited after receiving earnest money?

within three banking days Signup and view all the answers

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?

A broker on active status Signup and view all the answers

Lonnie's actions of not mentioning the actual square footage are a form of willful misrepresentation.

True Signup and view all the answers

What is the primary purpose of the North Carolina Real Estate Commission?

to protect the general public Signup and view all the answers

How long are ad valorem tax liens valid in North Carolina?

10 years Signup and view all the answers

Which North Carolina state law requires most types of real estate documents to be recorded?

the Conner Act Signup and view all the answers

Is the contract legally binding once a broker provides a copy of the written, signed contract to the buyer?

False Signup and view all the answers

Which of the following is true regarding Harrison's role in the dual agency?

Harrison can NOT be one of the designated agents because he's supervising the provisional broker who is a designated agent for the other party to the transaction. Signup and view all the answers

North Carolina licensees owe the duty of honesty to ______.

all parties involved in the transaction Signup and view all the answers

In North Carolina, the legal test the courts apply to determine whether an item is a fixture or personal property is the ______.

total circumstances test Signup and view all the answers

What is a required step for North Carolina time share developer Condo Sales to renew its certificate of registration?

pay the renewal fee of $800 Signup and view all the answers

Robyn is following NC retention requirements by retaining her original documents for three years post-transaction.

False Signup and view all the answers

From whom may Josh accept compensation as a provisional broker in North Carolina?

only from Patricia or from Sunny Valley Realty Signup and view all the answers

According to statute, what is the deadline by which Virgil must send Lindsay a summary of information related to the rental agreements?

within 45 days of the agreement's execution Signup and view all the answers

Where are laws that provide subdivision development regulations found in North Carolina?

the North Carolina Planned Community Act Signup and view all the answers

How are changes typically made to an offer to create a counter-offer in North Carolina?

the broker handwrites any alterations directly onto the original offer form, and the seller initials and dates those changes Signup and view all the answers

Which of the following documents in North Carolina does NOT create a binding contract once the agent and client have signed it?

Working with Real Estate Agents brochure Signup and view all the answers

If Ted had permission to share the amount of the highest offer he had, his actions would be legal.

False Signup and view all the answers

In North Carolina, which of the following must be included in all advertisements a broker creates?

the broker's affiliated brokerage firm or sole proprietorship's name Signup and view all the answers

How long after Ernesto gave Bertrand his earnest money check must the check be deposited?

immediately Signup and view all the answers

Generally speaking, all North Carolina brokers have a responsibility to _____ trust funds.

safeguard Signup and view all the answers

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.

True Signup and view all the answers

What action should you take if your buyer client is concerned about the septic system's condition?

advise your buyer client to make the purchase contingent upon an acceptable inspection of the septic system Signup and view all the answers

What should Greta do to assist Bill with his specific requests for an offer to purchase?

advise Bill to consult with an attorney who can help him complete the offer to purchase according to his wishes Signup and view all the answers

Where should North Carolina broker Elizabeth deposit an earnest money check from a buyer client?

in a trust or escrow account Signup and view all the answers

What must broker Elena have before putting a for sale sign up in the yard of her new listing?

the seller's written permission Signup and view all the answers

Which of the following is an example of license surrender in North Carolina?

broker Kit voluntarily asks to return her license to the commission and cease conducting real estate activities. Signup and view all the answers

Which type of deed offers the greatest protection for the grantee because it typically contains all six covenants?

General warranty deed Signup and view all the answers

Incompetence is a disciplinable offense in North Carolina because an incompetent licensee can endanger the public's interest.

True Signup and view all the answers

North Carolina's waterway zoning standards apply mostly to _______.

land within 30 to 50 feet of the water's edge Signup and view all the answers

What can happen to a North Carolina licensee who is found guilty of improper, fraudulent, or dishonest dealing?

discipline from NCREC Signup and view all the answers

How many brokers can supervise a North Carolina provisional broker, unless the provisional broker is a member of a team entity?

one Signup and view all the answers

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.

an actively licensed qualifying broker Signup and view all the answers

Under what circumstance would broker Thomas be permitted to accept compensation offered by a party other than his client?

if the compensation is fully disclosed to the relevant parties in a timely manner, and it is otherwise legal Signup and view all the answers

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.

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.

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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