NC Post Licensing 301 Comprehensive
Review Vault: Extensive Question Bank with
Accurate and Detailed Answers, Practical
Examples, Key Topic Summaries, Assessment
Practice & Knowledge Enhancement Topic 6:
Ethical and Legal Responsibilities of Brokers.
Q1. The primary source of ethical standards for REALTORS® in North Carolina is:
A) The NC Real Estate License Law
B) The NAR Code of Ethics
C) The NC General Statutes
D) The NC Real Estate Commission Rules
✔ Correct Answer: B
The National Association of REALTORS® (NAR) Code of Ethics applies to members of NAR. It
imposes higher standards than license law.
Q2. A REALTOR® must present all written offers to the seller unless:
A) The offer is below the asking price
B) The seller has instructed otherwise in writing
C) The buyer is not pre-approved
D) The offer is from an unrepresented buyer
✔ Correct Answer: B
The NAR Code of Ethics requires REALTORS® to present all written offers unless the seller has
given specific written instructions otherwise.
Q3. Under the NAR Code of Ethics, a REALTOR® must be honest with:
A) Only clients
B) Only customers
C) Both clients and customers
D) Only other REALTORS®
,✔ Correct Answer: C
The Code requires honesty and fairness to all parties, not just clients.
Q4. A REALTOR® may not make false or misleading statements about:
A) Other REALTORS®
B) Other brokers who are not REALTORS®
C) Their own services
D) All of the above
✔ Correct Answer: D
Article 15 of the NAR Code prohibits false or misleading statements about any competitor or
their own services.
Q5. A REALTOR® is required to arbitrate commission disputes with another REALTOR®:
A) Never
B) Only if both agree
C) If both are NAR members, they must arbitrate rather than sue
D) Only for residential transactions
✔ Correct Answer: C
NAR members agree to arbitrate commission disputes with other members through local
association processes.
Q6. The NC Real Estate Commission's rules on advertising require that all broker advertisements
include:
A) The broker's home address
B) The firm's name (or broker's name if independent) and a phone number or address
C) The broker's license number
D) The broker's social security number
✔ Correct Answer: B
NC Administrative Code 58A .0116 requires advertisements to identify the licensed firm or broker
responsible.
, Q7. A broker places a "For Sale" sign in a yard. The sign must include:
A) Only the broker's name
B) The firm's name and a phone number or address
C) The listing price only
D) No information is required
✔ Correct Answer: B
For Sale signs are advertisements and must comply with identification rules.
Q8. A broker posts a property on Facebook Marketplace. The post must:
A) Include only the price
B) Include the firm's name and a phone number or address
C) Include only the property address
D) No rules apply to social media
✔ Correct Answer: B
Social media posts are advertisements. The same identification rules apply.
Q9. A broker pays for a Google ad that appears as "Homes for Sale – Call John." John's firm is
"ABC Realty." The ad must:
A) Be fine as is
B) Include "ABC Realty" and a phone number or address
C) Include John's license number
D) Include John's photo
✔ Correct Answer: B
The firm name must be clearly identifiable in the ad.
Q10. A broker uses a team name ("The Smith Home Team") in advertising. The ad must also
include:
A) Only the team name
B) The name of the sponsoring broker/firm
C) The team's logo only
D) No additional information
✔ Correct Answer: B
Team names are not registered entities. The sponsoring firm's name must be clearly identified.
Review Vault: Extensive Question Bank with
Accurate and Detailed Answers, Practical
Examples, Key Topic Summaries, Assessment
Practice & Knowledge Enhancement Topic 6:
Ethical and Legal Responsibilities of Brokers.
Q1. The primary source of ethical standards for REALTORS® in North Carolina is:
A) The NC Real Estate License Law
B) The NAR Code of Ethics
C) The NC General Statutes
D) The NC Real Estate Commission Rules
✔ Correct Answer: B
The National Association of REALTORS® (NAR) Code of Ethics applies to members of NAR. It
imposes higher standards than license law.
Q2. A REALTOR® must present all written offers to the seller unless:
A) The offer is below the asking price
B) The seller has instructed otherwise in writing
C) The buyer is not pre-approved
D) The offer is from an unrepresented buyer
✔ Correct Answer: B
The NAR Code of Ethics requires REALTORS® to present all written offers unless the seller has
given specific written instructions otherwise.
Q3. Under the NAR Code of Ethics, a REALTOR® must be honest with:
A) Only clients
B) Only customers
C) Both clients and customers
D) Only other REALTORS®
,✔ Correct Answer: C
The Code requires honesty and fairness to all parties, not just clients.
Q4. A REALTOR® may not make false or misleading statements about:
A) Other REALTORS®
B) Other brokers who are not REALTORS®
C) Their own services
D) All of the above
✔ Correct Answer: D
Article 15 of the NAR Code prohibits false or misleading statements about any competitor or
their own services.
Q5. A REALTOR® is required to arbitrate commission disputes with another REALTOR®:
A) Never
B) Only if both agree
C) If both are NAR members, they must arbitrate rather than sue
D) Only for residential transactions
✔ Correct Answer: C
NAR members agree to arbitrate commission disputes with other members through local
association processes.
Q6. The NC Real Estate Commission's rules on advertising require that all broker advertisements
include:
A) The broker's home address
B) The firm's name (or broker's name if independent) and a phone number or address
C) The broker's license number
D) The broker's social security number
✔ Correct Answer: B
NC Administrative Code 58A .0116 requires advertisements to identify the licensed firm or broker
responsible.
, Q7. A broker places a "For Sale" sign in a yard. The sign must include:
A) Only the broker's name
B) The firm's name and a phone number or address
C) The listing price only
D) No information is required
✔ Correct Answer: B
For Sale signs are advertisements and must comply with identification rules.
Q8. A broker posts a property on Facebook Marketplace. The post must:
A) Include only the price
B) Include the firm's name and a phone number or address
C) Include only the property address
D) No rules apply to social media
✔ Correct Answer: B
Social media posts are advertisements. The same identification rules apply.
Q9. A broker pays for a Google ad that appears as "Homes for Sale – Call John." John's firm is
"ABC Realty." The ad must:
A) Be fine as is
B) Include "ABC Realty" and a phone number or address
C) Include John's license number
D) Include John's photo
✔ Correct Answer: B
The firm name must be clearly identifiable in the ad.
Q10. A broker uses a team name ("The Smith Home Team") in advertising. The ad must also
include:
A) Only the team name
B) The name of the sponsoring broker/firm
C) The team's logo only
D) No additional information
✔ Correct Answer: B
Team names are not registered entities. The sponsoring firm's name must be clearly identified.
