2
NC Post Licensing – 303 Exam with verified detailed answers
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A Licensee may not earn compensation when there license - VIP - ✔✔is INACTIVE or
|| || || || || || || || || || || || || || ||
EXPIRED
A Licensee can receive compensation that was earned WHEN - VIPterm-0 - ✔✔the license
|| || || || || || || || || || || || || ||
was current and active even if inactive of expired after
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A BIC may NOT pay a licensee's ENTITY - ✔✔unless the entity has a firm license.
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A Licensee can share commission with parties BUT - ✔✔1) Must be in writing - as part of
|| || || || || || || || || || || || || || || || || ||
the agreement
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2) Must be subject to Lender Approval in case of loans
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3) Disclosed on the Closing Disclosure
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4) Is considered a gift
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5) Only with principal or client (not others)
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Compensation ALWAYS flows through the firm - ✔✔1) from the BIC || || || || || || || || || ||
2) NO payment directly by the firm
|| || || || || ||
3) Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships
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,2
When Paying Non-Affiliated Brokers or Firms - ✔✔1) Best Practice to put in writing - Not a
|| || || || || || || || || || || || || || || || ||
Rule
2) May pay referral fees to brokers in any state if person has a CURRENT and ACTIVE
|| || || || || || || || || || || || || || || || ||
license
3) DOCUMENTATION in broker's file:
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- Written documentation regarding fee
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- Proof of licensure
|| || ||
- Copy of a W9 for Brokerage Insurance or a 1099
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When receiving Bonuses & Incentives - ✔✔Disclosure AND consent by Principal is
|| || || || || || || || || || || ||
REQUIRED
RESPA Prohibits - ✔✔KICKBACKS to
|| || || || ||
Settlement Service Providers || || ||
- BANKS
||
- APPRAISAL COMPANIES
|| ||
- TITLE OFFICERS
|| ||
- ATTORNEYS
||
RESPA STATUTE - ✔✔Applies to:
|| || || ||
- 1-4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED LOAN
|| || || || || || || || ||
- ENFORCED BY HUD
|| || ||
RESPA does not apply to (VIP) - ✔✔1) Vacant Land Transactions
|| || || || || || || || || ||
, 2
2) Cash Transactions
|| ||
3) Seller Financed Transactions
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) Commercial Transactions
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RESPA CO-OWNERSHIP with different settlement service providers - ✔✔Also known as:
|| || || || || || || || || ||
- Affiliated Business Arrangements (ABAs)
|| || || ||
- Controlled Business Arrangements (CBAs)
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These are permitted but 3 requirements:
|| || || || ||
1) Disclosure of the relationship
|| || || ||
2) Use of the service provider cannot be forced
|| || || || || || || ||
3) must disclose fees
|| || ||
RESPA PROHIBITS - ✔✔Real Estate Licenses from forcing client or customer to use a
|| || || || || || || || || || || || || ||
particular settlement service provider || || ||
Commercial Real Estate Lien Act says - ✔✔Lien May be placed on Commercial properties
|| || || || || || || || || || || || || ||
for commercial service rendered in a sales or lease transaction
|| || || || || || || || ||
Commercial Real Estate Lien Requirements - ✔✔1) Written Agreement specifying services
|| || || || || || || || || || ||
and compensation||
NC Post Licensing – 303 Exam with verified detailed answers
|| || || || || || || || ||
A Licensee may not earn compensation when there license - VIP - ✔✔is INACTIVE or
|| || || || || || || || || || || || || || ||
EXPIRED
A Licensee can receive compensation that was earned WHEN - VIPterm-0 - ✔✔the license
|| || || || || || || || || || || || || ||
was current and active even if inactive of expired after
|| || || || || || || || ||
A BIC may NOT pay a licensee's ENTITY - ✔✔unless the entity has a firm license.
|| || || || || || || || || || || || || || ||
A Licensee can share commission with parties BUT - ✔✔1) Must be in writing - as part of
|| || || || || || || || || || || || || || || || || ||
the agreement
||
2) Must be subject to Lender Approval in case of loans
|| || || || || || || || || ||
3) Disclosed on the Closing Disclosure
|| || || || || ||
4) Is considered a gift
|| || || ||
5) Only with principal or client (not others)
|| || || || || || ||
Compensation ALWAYS flows through the firm - ✔✔1) from the BIC || || || || || || || || || ||
2) NO payment directly by the firm
|| || || || || ||
3) Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships
|| || || || || || || || || ||
,2
When Paying Non-Affiliated Brokers or Firms - ✔✔1) Best Practice to put in writing - Not a
|| || || || || || || || || || || || || || || || ||
Rule
2) May pay referral fees to brokers in any state if person has a CURRENT and ACTIVE
|| || || || || || || || || || || || || || || || ||
license
3) DOCUMENTATION in broker's file:
|| || || ||
- Written documentation regarding fee
|| || || ||
- Proof of licensure
|| || ||
- Copy of a W9 for Brokerage Insurance or a 1099
|| || || || || || || || || ||
When receiving Bonuses & Incentives - ✔✔Disclosure AND consent by Principal is
|| || || || || || || || || || || ||
REQUIRED
RESPA Prohibits - ✔✔KICKBACKS to
|| || || || ||
Settlement Service Providers || || ||
- BANKS
||
- APPRAISAL COMPANIES
|| ||
- TITLE OFFICERS
|| ||
- ATTORNEYS
||
RESPA STATUTE - ✔✔Applies to:
|| || || ||
- 1-4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED LOAN
|| || || || || || || || ||
- ENFORCED BY HUD
|| || ||
RESPA does not apply to (VIP) - ✔✔1) Vacant Land Transactions
|| || || || || || || || || ||
, 2
2) Cash Transactions
|| ||
3) Seller Financed Transactions
|| || ||
) Commercial Transactions
|| ||
RESPA CO-OWNERSHIP with different settlement service providers - ✔✔Also known as:
|| || || || || || || || || ||
- Affiliated Business Arrangements (ABAs)
|| || || ||
- Controlled Business Arrangements (CBAs)
|| || || ||
These are permitted but 3 requirements:
|| || || || ||
1) Disclosure of the relationship
|| || || ||
2) Use of the service provider cannot be forced
|| || || || || || || ||
3) must disclose fees
|| || ||
RESPA PROHIBITS - ✔✔Real Estate Licenses from forcing client or customer to use a
|| || || || || || || || || || || || || ||
particular settlement service provider || || ||
Commercial Real Estate Lien Act says - ✔✔Lien May be placed on Commercial properties
|| || || || || || || || || || || || || ||
for commercial service rendered in a sales or lease transaction
|| || || || || || || || ||
Commercial Real Estate Lien Requirements - ✔✔1) Written Agreement specifying services
|| || || || || || || || || || ||
and compensation||
