Questions and Answers
A provisional broker generally may perform the same acts as a nonprovisional broker as long as the provisional broker is supervised by a broker-in-charge.
True
A limited nonresident commercial broker can reside in a state other than North Carolina but still engage in real estate transactions in North Carolina under some conditions.
True
An individual who sells one property a year for a neighbor does not need to acquire a North Carolina real estate license if the individual receives less than $500 for the service.
False
A salaried assistant who provides factual information about listings to prospective buyers does not need to have a North Carolina real estate license.
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A current licensee is one who takes any required postlicensing or continuing education course.
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A licensed individual can choose to be inactive.
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A brokerage firm advertisement for a listed property on social media that reads 'Contact Eric for more information about this property by clicking here' has fulfilled NCREC rules regarding advertising.
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A buyer wishes his brokerage/agent to add some special language to an offer. The broker does not have a form that will provide that language, so the broker drafts the language himself. This practice is acceptable and lawful.
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All real estate licenses expire on June 10.
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If a provisional broker fails to complete postlicensing courses by the appropriate time, the license will be placed on expired status.
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A broker-in-charge must be a full broker with at least two years of full-time real estate brokerage experience within the last 10 years.
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A firm has five different branch offices. There must be a BIC at each branch office.
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Escrow monies in the form of a check must be deposited within three days of receipt.
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Brokers must maintain separate escrow accounts for tenant monies and for buyer monies.
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Study Notes
Provisional Broker Regulations
- Provisional brokers may perform similar acts as nonprovisional brokers if supervised by a broker-in-charge.
- A provisional broker's supervision is key to their operational scope in real estate.
Limited Nonresident Commercial Brokers
- Limited nonresident commercial brokers can live outside North Carolina but still conduct transactions in the state.
- Conditions include supervision by an active North Carolina broker.
Licensing Requirements
- Selling even one property per year requires a North Carolina real estate license, regardless of compensation.
- A salaried assistant providing factual information does not need a real estate license, provided they do not offer subjective advice or negotiate deals.
License Status
- A current licensee is defined as someone who has timely paid the renewal fees, not simply completed education courses.
- Individuals can voluntarily choose to become inactive by not meeting educational requirements, but inactivity may lead to loss of license activation rights if not addressed.
Advertising Regulation
- Brokerage advertisements must include the firm’s name to comply with NCREC rules, rather than just individual agent contact prompts.
Legal Practices in Broker Transactions
- Brokers are not permitted to draft contract language themselves if special clauses are needed; this is against North Carolina law.
License Expiration and Status
- All real estate licenses in North Carolina expire on June 30.
- Failure to complete postlicensing courses results in inactive status rather than expiration.
Broker-in-Charge (BIC) Requirements
- A broker-in-charge must have been a full broker with a minimum of two years of full-time brokerage experience within the past five years.
Office Management
- Each branch office of a brokerage must have a designated broker-in-charge (BIC) present to manage brokerage activities.
Escrow Account Protocol
- Escrow checks must be deposited within three days of the contract's effective date, not just from receipt.
- Brokers are allowed to maintain a single escrow account for both tenant and buyer funds, contrary to the separation of accounts requirement.
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Description
Test your knowledge of North Carolina's Real Estate License Law and Commission Rules with these flashcards. This quiz covers important concepts regarding the roles of provisional and nonprovisional brokers in the state. Challenge yourself and prepare for your real estate licensing exam!
