NC Real Estate Exam State Portion EXAM
STUDY GUIDE QUESTIONS AND
CORRECT ANSWERS LATEST REVIEW
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 - ANS 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 - ANS A: when the NCREC
receives notification of the provisional broker's activation with a BIC
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 - ANS 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 - ANS 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. - ANS C: Yes, Judy is engaged in the business of real estate without a license
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 - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS 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.
STUDY GUIDE QUESTIONS AND
CORRECT ANSWERS LATEST REVIEW
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 - ANS 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 - ANS A: when the NCREC
receives notification of the provisional broker's activation with a BIC
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 - ANS 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 - ANS 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. - ANS C: Yes, Judy is engaged in the business of real estate without a license
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 - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS 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.
