THE CE SHOP EXAMS NC (STATE PORTION UPDATED
QUESTIONS AND CORRECT ANSWERS
Question:
1. North Carolina broker Abbey doesn't have a license to practice law. This means that she can _______.
Answer:
Never draft or alter the rights granted within a legal instrument
Question:
2. Which of the following North Carolina licensees' actions will result in misconduct for failure to disclose
material facts?
Answer:
A licensee failed to disclose pending zoning changes in the immediate area to a buyer and other third
parties.
Question:
3. NCREC disciplined Tina because she ______ when she neglected to include the dates for a due
diligence period in the contract she submitted to a seller, ultimately causing the transaction to fail.
Answer:
Acted incompetently
Question:
4. Buyer Blanca and seller Salazar have recently entered into a sales contract to purchase Salazar's home
using the Standard 2-T Offer to Purchase and Contract form, jointly approved by the North Carolina
Association of REALTORS® and the North Carolina Bar Association. Salazar has not breached the
contract in any way, but Blanca decides to terminate the contract during the Due Diligence Period.
According to this contract, which of the following moneys, if any, should be refunded to Blanca?
Answer:
The earnest money only
Question:
5. Your client Ethan just had his offer, in which he paid a $1,200 due diligence fee and a $8,000 earnest
money deposit, accepted on a single-family home in North Carolina. He asked you what he needs to do to
determine the property's condition. Which of the following statements would be the BEST and most
complete answer for you to give to Ethan?
Answer:
"You should perform your due diligence thoroughly by getting inspections and addressing any potential
issues during the due diligence period. If you opt to cancel the contract for any reason during that period,
you'll get your earnest money back."
Question:
6. Based on the North Carolina Real Estate Commission's Residential Square Footage Guidelines, which of
the following statements about "living area" is TRUE?
Answer:
The ceiling height must be at least seven feet, unless there are sloped ceilings.
, Question:
7. North Carolina law allows agency agreements made with buyers to be oral under which of the following
circumstances?
Answer:
They are defined in writing by the time an offer is made.
Question:
8. Which of the following statements about North Carolina unlicensed assistants is TRUE?
Answer:
Unlicensed assistants may, at a licensee's direction, place for sale or for rent signs and lock boxes on
property.
Question:
9. A North Carolina broker advertises a home as having 1,500 square feet of living area, when the home
only had 1,000 square feet of living area. Which of the following parties could face disciplinary action
from the real estate commission for misrepresentation?
Answer:
The broker, the managing broker, and the firm
Question:
10. Which of the following statements about a North Carolina provisional broker is TRUE?
Answer:
If a PB violates license law, both the PB and the PB's supervising broker may face disciplinary action by
the commission
Question:
11. In addition to individuals, which of the following business entities also must be licensed to engage in
real estate brokerage in North Carolina?
Answer:
Any limited liability company operating for the sole purpose of auctioning properties for a flat fee
Question:
12. A North Carolina seller couple wants to include several conditions in their counter-offer. There's no
standard addendum that meets the sellers' needs in these areas. The listing agent ______.
Answer:
Should strongly advise that the sellers have an attorney draft the appropriate language as an addendum to
the contract
Question:
13. Which of the following statements regarding North Carolina trust accounts is TRUE?
Answer:
A North Carolina property manager who holds security deposits for tenants must have a trust account.
Question:
14. Which of the following options best describes the reason that North Carolina properties must be
appraised at least every eight years?
QUESTIONS AND CORRECT ANSWERS
Question:
1. North Carolina broker Abbey doesn't have a license to practice law. This means that she can _______.
Answer:
Never draft or alter the rights granted within a legal instrument
Question:
2. Which of the following North Carolina licensees' actions will result in misconduct for failure to disclose
material facts?
Answer:
A licensee failed to disclose pending zoning changes in the immediate area to a buyer and other third
parties.
Question:
3. NCREC disciplined Tina because she ______ when she neglected to include the dates for a due
diligence period in the contract she submitted to a seller, ultimately causing the transaction to fail.
Answer:
Acted incompetently
Question:
4. Buyer Blanca and seller Salazar have recently entered into a sales contract to purchase Salazar's home
using the Standard 2-T Offer to Purchase and Contract form, jointly approved by the North Carolina
Association of REALTORS® and the North Carolina Bar Association. Salazar has not breached the
contract in any way, but Blanca decides to terminate the contract during the Due Diligence Period.
According to this contract, which of the following moneys, if any, should be refunded to Blanca?
Answer:
The earnest money only
Question:
5. Your client Ethan just had his offer, in which he paid a $1,200 due diligence fee and a $8,000 earnest
money deposit, accepted on a single-family home in North Carolina. He asked you what he needs to do to
determine the property's condition. Which of the following statements would be the BEST and most
complete answer for you to give to Ethan?
Answer:
"You should perform your due diligence thoroughly by getting inspections and addressing any potential
issues during the due diligence period. If you opt to cancel the contract for any reason during that period,
you'll get your earnest money back."
Question:
6. Based on the North Carolina Real Estate Commission's Residential Square Footage Guidelines, which of
the following statements about "living area" is TRUE?
Answer:
The ceiling height must be at least seven feet, unless there are sloped ceilings.
, Question:
7. North Carolina law allows agency agreements made with buyers to be oral under which of the following
circumstances?
Answer:
They are defined in writing by the time an offer is made.
Question:
8. Which of the following statements about North Carolina unlicensed assistants is TRUE?
Answer:
Unlicensed assistants may, at a licensee's direction, place for sale or for rent signs and lock boxes on
property.
Question:
9. A North Carolina broker advertises a home as having 1,500 square feet of living area, when the home
only had 1,000 square feet of living area. Which of the following parties could face disciplinary action
from the real estate commission for misrepresentation?
Answer:
The broker, the managing broker, and the firm
Question:
10. Which of the following statements about a North Carolina provisional broker is TRUE?
Answer:
If a PB violates license law, both the PB and the PB's supervising broker may face disciplinary action by
the commission
Question:
11. In addition to individuals, which of the following business entities also must be licensed to engage in
real estate brokerage in North Carolina?
Answer:
Any limited liability company operating for the sole purpose of auctioning properties for a flat fee
Question:
12. A North Carolina seller couple wants to include several conditions in their counter-offer. There's no
standard addendum that meets the sellers' needs in these areas. The listing agent ______.
Answer:
Should strongly advise that the sellers have an attorney draft the appropriate language as an addendum to
the contract
Question:
13. Which of the following statements regarding North Carolina trust accounts is TRUE?
Answer:
A North Carolina property manager who holds security deposits for tenants must have a trust account.
Question:
14. Which of the following options best describes the reason that North Carolina properties must be
appraised at least every eight years?
