Real Estate U State
Exam Pt. 1
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
, A real estate license in North Carolina is NOT required for which of the following? - Answer: A firm
selling its own property through the actions of its own employees
If a person is the salaried employee (paid hourly or salaried but NEVER commissioned) of the
PROPERTY'S OWNER they can perform ANY functions their employer (the property owner) wants
without that person needing to have a real estate license (selling property owned by their boss, leasing
property owned by their boss, negotiating on behalf of their boss, showing any property owned by their
boss to potential buyers or tenants). Conducting a real estate auction requires a real estate license. Any
real estate services provided to other people for a fee requires a license.
Is an unlicensed salaried assistant of a real estate broker allowed to solicit listings for their broker? -
Answer: It is not legal for the unlicensed assistant to solicit listings for her broker.
An unlicensed assistant who is paid a salary by their employer (the real estate broker) is allowed to
perform SOME functions of their employer without needing a license. This includes helping with staging
the property, setting up appointments, collecting money, and helping make deposits of money being
held. However, unlicensed assistants are NOT allowed to solicit listings or show properties for sale.
A buyer makes a written offer to purchase a property and includes a $2,500 earnest money deposit. The
seller makes a counteroffer for more money. The buyer verbally accepts. The listing agent deposits the
money in the trust account at this point in time. When the buyer receives the seller's counteroffer, he
refuses to sign even though he had verbally agreed earlier. The seller is angry and tells the buyer that he
will not return the earnest deposit since the buyer has reneged on his word. In fact, the seller demands
that the listing agent give him the deposit. What must the real estate agent do regarding the earnest
money in this situation? - Answer: He must retain the deposit in the trust account until he obtains
written permission from the buyer and seller or await a court order.
Even if the seller is entitled to keep the earnest money, the Commission Rules state that both parties
must agree before the escrow agent can release the earnest money.
A listing broker advised a prospective buyer that the property the buyer was considering was scheduled
for annexation into the city limits. This disclosure constituted which of the following? - Answer:
Required disclosure of a material fact to the buyer.
All known material facts must be disclosed to the buyer. This is an example of a material fact since it
may influence if the buyer should move forward with the sale or not.
Exam Pt. 1
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
, A real estate license in North Carolina is NOT required for which of the following? - Answer: A firm
selling its own property through the actions of its own employees
If a person is the salaried employee (paid hourly or salaried but NEVER commissioned) of the
PROPERTY'S OWNER they can perform ANY functions their employer (the property owner) wants
without that person needing to have a real estate license (selling property owned by their boss, leasing
property owned by their boss, negotiating on behalf of their boss, showing any property owned by their
boss to potential buyers or tenants). Conducting a real estate auction requires a real estate license. Any
real estate services provided to other people for a fee requires a license.
Is an unlicensed salaried assistant of a real estate broker allowed to solicit listings for their broker? -
Answer: It is not legal for the unlicensed assistant to solicit listings for her broker.
An unlicensed assistant who is paid a salary by their employer (the real estate broker) is allowed to
perform SOME functions of their employer without needing a license. This includes helping with staging
the property, setting up appointments, collecting money, and helping make deposits of money being
held. However, unlicensed assistants are NOT allowed to solicit listings or show properties for sale.
A buyer makes a written offer to purchase a property and includes a $2,500 earnest money deposit. The
seller makes a counteroffer for more money. The buyer verbally accepts. The listing agent deposits the
money in the trust account at this point in time. When the buyer receives the seller's counteroffer, he
refuses to sign even though he had verbally agreed earlier. The seller is angry and tells the buyer that he
will not return the earnest deposit since the buyer has reneged on his word. In fact, the seller demands
that the listing agent give him the deposit. What must the real estate agent do regarding the earnest
money in this situation? - Answer: He must retain the deposit in the trust account until he obtains
written permission from the buyer and seller or await a court order.
Even if the seller is entitled to keep the earnest money, the Commission Rules state that both parties
must agree before the escrow agent can release the earnest money.
A listing broker advised a prospective buyer that the property the buyer was considering was scheduled
for annexation into the city limits. This disclosure constituted which of the following? - Answer:
Required disclosure of a material fact to the buyer.
All known material facts must be disclosed to the buyer. This is an example of a material fact since it
may influence if the buyer should move forward with the sale or not.
