NC Real Estate Exam Questions
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Questions and Answers

Which statute governs the ad valorem taxation of property? (Select one)

  • The Ad Valorem Act
  • Real Estate Taxation Act
  • Machinery Act (correct)
  • General Statute

    • Which type of valuation technique applies a standard percentage increase or decrease to all property in a specified location? (Select one)

  • Mass appraisal (correct)
  • Valuation
  • There is no such appraisal
  • County appraisal

    • What is an octennial reappraisal? (Select one)

  • Grouping reappraisals by square footage and year built
  • The statutory reappraisal of all real property in North Carolina for tax purposes (correct)
  • Reappraisals done in groups of eight
  • None of the above

    • The ______ is responsible for real estate licensing. (Select one)

    <p>North Carolina Real Estate Commission (NCREC)</p> Signup and view all the answers

    Which type of lien provides security to persons that work on real property owned by others? (Select one)

    <p>Mechanic's lien</p> Signup and view all the answers

    Which of the following is a requirement to become a real estate broker in North Carolina? (Select all that apply)

    <p>All of the above</p> Signup and view all the answers

    Which type of broker license status category is 'entry level' and requires supervision? (Select one)

    <p>Provisional broker</p> Signup and view all the answers

    Which statement is true about the North Carolina Real Estate Commission? (Select one)

    <p>They are responsible for overseeing the licensing and regulating of real estate agents in North Carolina</p> Signup and view all the answers

    Which non-profit trade association represents 46 local real estate associations in North Carolina? (Select one)

    <p>North Carolina Association of Real Estate Brokers</p> Signup and view all the answers

    Which of the following statements is true about reciprocity in North Carolina? (Select one)

    <p>They must pay a fee for the nonresident license</p> Signup and view all the answers

    Real estate applicants must provide proof that they possess ________. (Select one)

    <p>General moral character</p> Signup and view all the answers

    A _________ is a licensee who has the responsibility of supervision in real estate. (Select one)

    <p>Broker in charge</p> Signup and view all the answers

    Which of the following statements is true about brokers in the state of North Carolina? (Select one)

    <p>A &amp; C only</p> Signup and view all the answers

    Which of the following statements is true about real estate education in North Carolina? (Select one)

    <p>Courses must be at an approved real estate school</p> Signup and view all the answers

    All personal property in the state of North Carolina is appraised at its true value. Which of the following is an exception to this? (Select one)

    <p>A &amp; B only</p> Signup and view all the answers

    Which of the following is a state North Carolina does not have reciprocity with? (Select one)

    <p>Virginia</p> Signup and view all the answers

    A real estate license in North Carolina is issued for a _______. (Select one)

    <p>1-year period</p> Signup and view all the answers

    There is only one type of real estate license in North Carolina which is ___________. (Select one)

    <p>Broker</p> Signup and view all the answers

    Which type of lien is given higher priority? (Select one)

    <p>Current real estate taxes</p> Signup and view all the answers

    North Carolina requires all counties to conduct reappraisals at least every ______________. (Select one)

    <p>8 years</p> Signup and view all the answers

    How many hours of continuing education must be completed during the renewal period? (Select one)

    <p>8 hours</p> Signup and view all the answers

    Which of the following types of persons are exempt from real estate licensure? (Select one)

    <p>The property owner</p> Signup and view all the answers

    The _____ are exempt from licensure in a partnership. (Select one)

    <p>General partners</p> Signup and view all the answers

    Which of the following job duties is a non-licensed employee of a real estate agency not allowed to do? (Select one)

    <p>Negotiate leases or rental agreements</p> Signup and view all the answers

    Which of the following is true about unlicensed real estate assistants in North Carolina? (Select one)

    <p>They cannot be paid on commission</p> Signup and view all the answers

    In which of the following situations can a North Carolina broker file a lien to secure payment of brokerage fees? (Select one)

    <p>The sale of a shopping center by a listing agent</p> Signup and view all the answers

    Ad valorem property tax rates can be adjusted every _______. (Select one)

    <p>Year</p> Signup and view all the answers

    Which of the following duties can an unlicensed assistant in property management offices do? (Select one)

    <p>All of the above</p> Signup and view all the answers

    Who chooses the members of the NCREC? (Select one)

    <p>A &amp; C only</p> Signup and view all the answers

    How many members of the NCREC must be licensed brokers? (Select one)

    <p>3</p> Signup and view all the answers

    The members of the NCREC shall not do which of the following? (Select one)

    <p>Make rules or regulations regulating commission salaries</p> Signup and view all the answers

    North Carolina requires a broker to have a demand deposit in a ____________. (Select one)

    <p>Federally insured depository institution</p> Signup and view all the answers

    The NCREC has the authority to issue a _______ for the appearance of witnesses deemed necessary to testify. (Select one)

    <p>Subpoena</p> Signup and view all the answers

    An unlicensed person is practicing real estate in North Carolina, what action can the NCREC take? (Select one)

    <p>Issue a cease-and-desist order</p> Signup and view all the answers

    Who is responsible for setting guidelines for real estate education? (Select one)

    <p>NCREC</p> Signup and view all the answers

    A licensee may face disciplinary action if they do which of the following? (Select one)

    <p>B &amp; C only</p> Signup and view all the answers

    Who elects the NCREC chairman? (Select one)

    <p>The members of the NCREC</p> Signup and view all the answers

    How many members of the NCREC are not allowed to be directly or indirectly involved in real estate or the real estate appraisal business? (Select one)

    <p>2</p> Signup and view all the answers

    How many members does the NCREC consist of? (Select one)

    <p>1</p> Signup and view all the answers

    Which of the following is not a requirement of the North Carolina mechanics liens? (Select one)

    <p>A lien agent needs to be designated for private residential construction projects over $30,000 only</p> Signup and view all the answers

    Study Notes

    Ad Valorem Taxation

    • Governed by the Machinery Act, which outlines the process for listing, appraising, and assessing both real and personal property.
    • Ad valorem property tax rates can be adjusted annually.

    Valuation Techniques

    • Mass appraisal applies a uniform percentage adjustment to all properties in a specific area, used primarily for tax assessments.

    Reappraisal

    • Octennial reappraisal is required by law in North Carolina, mandating all counties to reappraise properties every eight years.

    Licensing Authorities

    • North Carolina Real Estate Commission (NCREC) oversees the licensing and regulation of real estate agents in the state.

    Lien Types

    • Mechanic's lien guarantees payment to builders and contractors for their services.
    • Current real estate taxes take precedence over other lien types.

    Broker Licensing

    • Requirements for becoming a real estate broker in North Carolina include being at least 18 years old, completing 90 hours of approved real estate courses, and paying an application fee.
    • A provisional broker is an entry-level status requiring supervision and completion of 75 hours of pre-licensing education.

    Real Estate Association

    • The North Carolina Association of Realtors represents local real estate associations and offers resources and opportunities to its members.

    Reciprocity

    • North Carolina allows reciprocity with several states but not with Virginia, and licensees must pay a fee for a nonresident license.

    License Renewal

    • Real estate licenses in North Carolina expire annually on June 30th, with a requirement of 8 hours of continuing education each renewal period.

    Exemptions from Licensure

    • Property owners, their family members, and certain unlicensed individuals are exempt from real estate licensure requirements.

    NCREC Membership and Guidelines

    • NCREC consists of nine members, three of whom must be licensed brokers.
    • The governor appoints seven members, while two are appointed by the general assembly.
    • The NCREC creates guidelines for real estate education and can issue subpoenas for required witness testimony.

    Unlicensed Activity

    • An unlicensed individual practicing real estate may be subjected to a cease-and-desist order by the NCREC.
    • Unlicensed assistants can perform various tasks in property management but cannot negotiate leases.

    Mechanic's Lien Requirements

    • A mechanic's lien must be filed within 120 days following the last delivery of materials or labor. A lien agent is not required for owner-occupied single-family homes.

    Disciplinary Actions

    • Licensees may face disciplinary action for misrepresenting facts, failing to account for funds, or representing others without consent.
    • NCREC cannot regulate commission salaries but can suspend or revoke licenses when necessary.

    Continuing Education and Training

    • Continuing education courses must be taken at an approved real estate school and are mandatory for license renewal.

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    Description

    Test your knowledge with flashcards on key concepts related to the North Carolina Real Estate Exam. This quiz covers statutes, taxation, and valuation techniques essential for real estate professionals. Prepare effectively and enhance your understanding of real estate regulations.

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