NC Real Estate Exam State Portion
Sally has had a buyer sign the Working with Real Estate Agents Brochure and execute
an Exclusive Buyer Representation Agreement. How long does Sally have to deliver
these documents to her Broker-in-Charge?
A: Immediately
B: Prior to Sally Being Paid Compensation
C: Within 3 Calendar Days
DWithin 5 Calendar Days - Correct Answer-C: Within 3 Calendar Days
A real estate agent is representing a buyer under a written buyer agency agreement.
The buyer would like to see a builder's home. The builder is offering a $1,000 bonus to
agents who sell at least 3 homes in the neighborhood. The real estate agent has not yet
made a sale in that neighborhood. Which of the following actions should the agent take
regarding disclosure of the bonus?
A: Because the agent has not made a sale, they are not required to notify the buyer of a
bonus until they are eligible for it.
B: The agent should notify the buyer of the bonus at the time of contract.
C: If the buyer client requests the agent share a portion of the bonus with them, the
agent is to instruct them that it is illegal for the agent to share bonuses with unlicensed
entities.
D: The agent may notify the buyer of the bonus orally, but the bonus must be confirmed
in writing before the client makes an offer to buy the home. - Correct Answer-D: The
agent may notify the buyer of the bonus orally, but the bonus must be confirmed in
writing before the client makes an offer to buy the home.
Which of the following is INCORRECT about the post licensing requirement of a
provisional broker?
A: the due date of the post licensing education is the anniversary date of licensure
B: post licensing consists of three 30 hour courses which may be taken in any order and
must be completed within 3 years of the date of licensure
C: post licensing courses end on June 10th and must be completed for the provisional
broker to renew their license on June 30th
D: if a provisional broker does not complete post licensing by the deadlines their license
will become inactive - Correct Answer-C: post licensing courses end on June 10th and
must be completed for the provisional broker to renew their license on June 30th
If a licensee does not pay their renewal fee on or before June 30 of the year, what is the
time period for the licensee to reinstate their license without the imposition of additional
educational requirements?
A: 30 days
B: 60 days
C: 6 months
,D: one year - Correct Answer-C: 6 months
Judy is an unlicensed individual. Her parents are selling their own home as For Sale by
Owner without the representation of a real estate licensee. While her parents are on
vacation, Judy shows the home to some interested potential buyers and has long
conversations with them about the conditions under which they may purchase her
parent's home. Judy's parents do not pay her in cash but instead offer to send on an
upcoming vacation. Is Judy in violation of NC Licensing Law?
A: No because the home is her parent's own property and it is therefore exempt from
the licensure requirement.
B: No, because Judy did not receive any cash payment for her activity.
C: Yes, Judy is engaged in the business of real estate without a license
D: Yes because Judy is legally required to obtain a power of attorney from her parents
in this instance. - Correct Answer-C: Yes, Judy is engaged in the business of real estate
without a license
When must a firm practicing "designated agency" disclose to the seller the name of the
agent representing the buyer.
A: at first substantial contact with the seller
B: at initial contact with the seller
C: at the time the buyer's agent shows the seller's property
D: at the time the offer is submitted to the seller - Correct Answer-D: at the time the offer
is submitted to the seller
What is the first point at which a provisional broker may begin practicing real estate in
North Carolina?
A: when the NCREC receives notification of the provisional broker's activation with a
BIC
B: upon successful completion of all course work and required examinations
C: upon completion of all educational requirements
D: upon formal notification from the NCREC that the candidate has successfully passed
the real estate examination and has been issued a license number - Correct Answer-A:
when the NCREC receives notification of the provisional broker's activation with a BIC
A provisional broker obtains their NC real estate license on April 15th and joins a real
estate firm. In order to remain active, the broker must pay the renewal fee to the NC
Real Estate Commission on or before:
A: June 30 of the current year
B: June 30 of the following year
C: June 10 of the current year
D: December 31 of the current year - Correct Answer-A: June 30 of the current year
The NC Homestead Exemption would be of importance and have the greatest impact
on:
A: a borrower who is in default on their property and facing foreclosure
, B: an individual who filed bankruptcy due to excessive medical bills and judgment liens
C: an investor who must engage in the short sale of an investment property
Da married couple who is selling their primary residence to a buyer - Correct Answer-B:
an individual who filed bankruptcy due to excessive medical bills and judgment liens
Jack is a licensed real estate professional in Illinois. He has been a broker for many
years, but is not licensed in NC. Jack has a friend who wants to purchase a home in
Charlotte, NC. In regard to the representation of this buyer all of the following are
TRUE, EXCEPT:
A: Jack may refer the buyer to a licensed NC broker and receive a referral fee even
though he is not licensed in NC.
B: Jack may meet with the buyer in Illinois and explain the purchase process and
answer questions about the NC transaction.
C: So long as Jack affiliates with a NC broker he may accompany the buyer to North
Carolina and assist in showing the buyer property
D: The NC real estate commission does not have jurisdiction over Jack unless Jack
conducts illegal brokerage activities in NC - Correct Answer-C: So long as Jack affiliates
with a NC broker he may accompany the buyer to North Carolina and assist in showing
the buyer property
Sherry is a provisional broker who works for a residential sales BIC and firm in North
Carolina. Sherry has a couple of clients who want her to manage their rental properties.
What are Sherry's options?
A: Sherry can manage the properties on her own outside of her existing firm
B: With the permission of her BIC Sherry can also affiliate with another firm that
engages in property management.
C: Sherry can manage the rental properties only if she obtains a power of attorney from
the owners.
D: Sherry can refer the clients to a property management firm and earn a referral fee
that is paid to her through her BIC - Correct Answer-D: Sherry can refer the clients to a
property management firm and earn a referral fee that is paid to her through her BIC
Jack, a licensee wants to make an offer to the seller on a property which Jack has listed
on behalf of his firm ABC. Which of the following is CORRECT?
A: A licensee may not make an offer on a property which they have listed
B: Jack can only proceed with an offer if he obtains full and proper consent for dual
agency
C: Jack must withdraw as the listing agent prior to making an offer. If the seller wants to
continue representation by the firm, the BIC can appoint another licensee to handle the
listing
D: So long as Jack discloses his status as a licensee and treats the seller fairly he may
proceed with an offer - Correct Answer-C: Jack must withdraw as the listing agent prior
to making an offer. If the seller wants to continue representation by the firm, the BIC can
appoint another licensee to handle the listing
Sally has had a buyer sign the Working with Real Estate Agents Brochure and execute
an Exclusive Buyer Representation Agreement. How long does Sally have to deliver
these documents to her Broker-in-Charge?
A: Immediately
B: Prior to Sally Being Paid Compensation
C: Within 3 Calendar Days
DWithin 5 Calendar Days - Correct Answer-C: Within 3 Calendar Days
A real estate agent is representing a buyer under a written buyer agency agreement.
The buyer would like to see a builder's home. The builder is offering a $1,000 bonus to
agents who sell at least 3 homes in the neighborhood. The real estate agent has not yet
made a sale in that neighborhood. Which of the following actions should the agent take
regarding disclosure of the bonus?
A: Because the agent has not made a sale, they are not required to notify the buyer of a
bonus until they are eligible for it.
B: The agent should notify the buyer of the bonus at the time of contract.
C: If the buyer client requests the agent share a portion of the bonus with them, the
agent is to instruct them that it is illegal for the agent to share bonuses with unlicensed
entities.
D: The agent may notify the buyer of the bonus orally, but the bonus must be confirmed
in writing before the client makes an offer to buy the home. - Correct Answer-D: The
agent may notify the buyer of the bonus orally, but the bonus must be confirmed in
writing before the client makes an offer to buy the home.
Which of the following is INCORRECT about the post licensing requirement of a
provisional broker?
A: the due date of the post licensing education is the anniversary date of licensure
B: post licensing consists of three 30 hour courses which may be taken in any order and
must be completed within 3 years of the date of licensure
C: post licensing courses end on June 10th and must be completed for the provisional
broker to renew their license on June 30th
D: if a provisional broker does not complete post licensing by the deadlines their license
will become inactive - Correct Answer-C: post licensing courses end on June 10th and
must be completed for the provisional broker to renew their license on June 30th
If a licensee does not pay their renewal fee on or before June 30 of the year, what is the
time period for the licensee to reinstate their license without the imposition of additional
educational requirements?
A: 30 days
B: 60 days
C: 6 months
,D: one year - Correct Answer-C: 6 months
Judy is an unlicensed individual. Her parents are selling their own home as For Sale by
Owner without the representation of a real estate licensee. While her parents are on
vacation, Judy shows the home to some interested potential buyers and has long
conversations with them about the conditions under which they may purchase her
parent's home. Judy's parents do not pay her in cash but instead offer to send on an
upcoming vacation. Is Judy in violation of NC Licensing Law?
A: No because the home is her parent's own property and it is therefore exempt from
the licensure requirement.
B: No, because Judy did not receive any cash payment for her activity.
C: Yes, Judy is engaged in the business of real estate without a license
D: Yes because Judy is legally required to obtain a power of attorney from her parents
in this instance. - Correct Answer-C: Yes, Judy is engaged in the business of real estate
without a license
When must a firm practicing "designated agency" disclose to the seller the name of the
agent representing the buyer.
A: at first substantial contact with the seller
B: at initial contact with the seller
C: at the time the buyer's agent shows the seller's property
D: at the time the offer is submitted to the seller - Correct Answer-D: at the time the offer
is submitted to the seller
What is the first point at which a provisional broker may begin practicing real estate in
North Carolina?
A: when the NCREC receives notification of the provisional broker's activation with a
BIC
B: upon successful completion of all course work and required examinations
C: upon completion of all educational requirements
D: upon formal notification from the NCREC that the candidate has successfully passed
the real estate examination and has been issued a license number - Correct Answer-A:
when the NCREC receives notification of the provisional broker's activation with a BIC
A provisional broker obtains their NC real estate license on April 15th and joins a real
estate firm. In order to remain active, the broker must pay the renewal fee to the NC
Real Estate Commission on or before:
A: June 30 of the current year
B: June 30 of the following year
C: June 10 of the current year
D: December 31 of the current year - Correct Answer-A: June 30 of the current year
The NC Homestead Exemption would be of importance and have the greatest impact
on:
A: a borrower who is in default on their property and facing foreclosure
, B: an individual who filed bankruptcy due to excessive medical bills and judgment liens
C: an investor who must engage in the short sale of an investment property
Da married couple who is selling their primary residence to a buyer - Correct Answer-B:
an individual who filed bankruptcy due to excessive medical bills and judgment liens
Jack is a licensed real estate professional in Illinois. He has been a broker for many
years, but is not licensed in NC. Jack has a friend who wants to purchase a home in
Charlotte, NC. In regard to the representation of this buyer all of the following are
TRUE, EXCEPT:
A: Jack may refer the buyer to a licensed NC broker and receive a referral fee even
though he is not licensed in NC.
B: Jack may meet with the buyer in Illinois and explain the purchase process and
answer questions about the NC transaction.
C: So long as Jack affiliates with a NC broker he may accompany the buyer to North
Carolina and assist in showing the buyer property
D: The NC real estate commission does not have jurisdiction over Jack unless Jack
conducts illegal brokerage activities in NC - Correct Answer-C: So long as Jack affiliates
with a NC broker he may accompany the buyer to North Carolina and assist in showing
the buyer property
Sherry is a provisional broker who works for a residential sales BIC and firm in North
Carolina. Sherry has a couple of clients who want her to manage their rental properties.
What are Sherry's options?
A: Sherry can manage the properties on her own outside of her existing firm
B: With the permission of her BIC Sherry can also affiliate with another firm that
engages in property management.
C: Sherry can manage the rental properties only if she obtains a power of attorney from
the owners.
D: Sherry can refer the clients to a property management firm and earn a referral fee
that is paid to her through her BIC - Correct Answer-D: Sherry can refer the clients to a
property management firm and earn a referral fee that is paid to her through her BIC
Jack, a licensee wants to make an offer to the seller on a property which Jack has listed
on behalf of his firm ABC. Which of the following is CORRECT?
A: A licensee may not make an offer on a property which they have listed
B: Jack can only proceed with an offer if he obtains full and proper consent for dual
agency
C: Jack must withdraw as the listing agent prior to making an offer. If the seller wants to
continue representation by the firm, the BIC can appoint another licensee to handle the
listing
D: So long as Jack discloses his status as a licensee and treats the seller fairly he may
proceed with an offer - Correct Answer-C: Jack must withdraw as the listing agent prior
to making an offer. If the seller wants to continue representation by the firm, the BIC can
appoint another licensee to handle the listing
