CE Shop State Practice Exam Attempt 1
Exam Questions And Answers
A NC broker is reviewing a settlement statement that an attorney prepared for his seller client.
Which of the following is the broker expected to ensure?
A. All calculations for prorated items are correct
B. All charges are properly charged, and all credits are properly credited.
C. The attorney who prepared the statement correctly inputted the amounts due to and from
third parties.
D. The entries about which the broker has direct knowledge, like the purchase price and earnest
money, are correct. - ANS D. The entries about which the broker has direct knowledge,
like the purchase price and earnest money, are correct.
In North Carolina, who is ultimately responsible for trust accounts and trust funds?
A. The client to whom the funds will eventually be dispersed
B. The broker-in-charge for the firm that's handling the funds and account
C. The custodian who deposited the funds and is maintaining the account
D. The client from whom the funds came - ANS B. The broker-in-charge for the firm that's
handling the funds and account
In North Carolina, agency agreement laws require that ______.
A. Oral buyer/tenant agency agreements be "exclusive" and for a definite period
B. Agency agreements with property owners of any type of property be in writing within three
days of service
C. Oral agency agreements address all key aspects of the relationship, including agent
compensation
D. Oral agency agreements be reduced to writing within three days after an offer is accepted -
ANS C. Oral agency agreements address all key aspects of the relationship, including
agent compensation
Which of the following is a TRUE statement about broker compensation in North Carolina?
A. As long as a provisional broker has the supervising broker's permission, the PB may legally
receive brokerage compensation directly from clients.
B. Compensation provided to a broker from a settlement service provider is probably in violation
of RESPA.
,C. A selling bonus the listing firm pays to the buyer's agent may be disclosed to the buyer client
for the first time on the Closing Disclosure.
D. Written disclosure of compensation received from anyone other than a broker's client must
be made directly to the client by the closing day. - ANS B. Compensation provided to a
broker from a settlement service provider is probably in violation of RESPA.
The North Carolina Residential Rental Agreements Act states that ______.
A. The landlord may use constructive eviction if the tenant destroys the rental property
B. The landlord must refund all rent moneys to the tenant if the landlord breaches the lease
agreement
C. The tenant can stop paying rent and use that money to pay for required repairs in the unit
D. The tenant must property dispose of all waste and garbage in a safe and clean manner -
ANS D. The tenant must property dispose of all waste and garbage in a safe and clean
manner
Note: Under the North Carolina Residential Rental Agreements Act, both landlords and tenants
have certain duties. Among them, landlords must keep the property in a safe, habitable
condition, and tenants must properly dispose of garbage in a clean and safe manner.
A buyer and seller have signed 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. The buyer paid a $1,000 due diligence fee and a $5,000 earnest money deposit.
During the due diligence period, the buyer realized he wouldn't be approved for a mortgage, so
he canceled the contract according to its terms. Which of the following statements BEST
describes what happens to the money?
A. The buyer gets the due diligence fee and EMD back.
B. The buyer gets the due diligence fee back, and the seller keeps the EMD.
C. The seller keeps the due diligence fee, and the buyer gets the EMD back.
D. The seller keeps the due diligence fee and the EMD. - ANS C. The seller keeps the
due diligence fee, and the buyer gets the EMD back.
Note: Due diligence is the buyer's chance to investigate the property and transaction. By paying
the due diligence fee to the seller, buyers have "bought" the right to terminate the contract for
any reason or no reason, as long as it's done before the due diligence period ends. If the buyer
terminates during the DDP, the buyer's earnest money will be refunded to the buyer, but the
seller gets to keep the due diligence fee.
In North Carolina, which of the following describes a situation in which a broker who's in charge
of a trust account would be permitted to disburse disputed trust funds?
A. It's been 90 days since the date the dispute was filed, allowing the broker to disburse the
funds as originally stated in the transaction parties' written agreement.
, B. It's been one year from since the date the dispute was filed, which means the broker may
disburse the funds as originally stated in the transaction parties' written agreement.
C. The broker receives an order from the North Carolina Real Estate Commission.
D. The broker receives a written release from both parties to disburse the funds. - ANS D.
The broker receives a written release from both parties to disburse the funds.
Note: A broker who's holding disputed trust funds may disburse the funds after either receiving a
written release from both parties, or after receiving a court order detailing disbursement
instructions. Alternately, the funds may be given to a clerk of the local superior court, who will
determine who gets what.
What is the license year period in North Carolina?
A. August 1 through July 31
B. January 1 through December 31
C. July 1 through June 30
D. June 1 through May 31 - ANS C. July 1 through June 30
Which North Carolina broker's license will be inactive as of the first day of the next licensing
year?
A. Craig, a broker-in-charge who's a solo practitioner
B. Denise, a provisional broker who's associated with Flying High Realty
C. Freida, a broker who paid a renewal fee but didn't complete her CE before June 10
D. George, a broker-in-charge who supervises other brokers but no longer actively sells real
estate - ANS C. Freida, a broker who paid a renewal fee but didn't complete her CE
before June 10
In North Carolina, designated agency cannot be used if ______.
A. A broker-in-charge is one of the designated agents
B. A designated agent of one party knows confidential information about the opposing party
C. A provisional broker is one of the designated agents
D. The firm is acting as a dual agent in the transaction - ANS B. A designated agent of
one party knows confidential information about the opposing party
Which of the following is the best example of first substantial contact in North Carolina?
A. Handing out brokerage pens at the state fair
B. Responding to an email request for local median home prices
C. Responding to a request to show a listing to a potential buyer
D. Sending postcards about neighborhood sales to a target group - ANS C. Responding
to a request to show a listing to a potential buyer
Exam Questions And Answers
A NC broker is reviewing a settlement statement that an attorney prepared for his seller client.
Which of the following is the broker expected to ensure?
A. All calculations for prorated items are correct
B. All charges are properly charged, and all credits are properly credited.
C. The attorney who prepared the statement correctly inputted the amounts due to and from
third parties.
D. The entries about which the broker has direct knowledge, like the purchase price and earnest
money, are correct. - ANS D. The entries about which the broker has direct knowledge,
like the purchase price and earnest money, are correct.
In North Carolina, who is ultimately responsible for trust accounts and trust funds?
A. The client to whom the funds will eventually be dispersed
B. The broker-in-charge for the firm that's handling the funds and account
C. The custodian who deposited the funds and is maintaining the account
D. The client from whom the funds came - ANS B. The broker-in-charge for the firm that's
handling the funds and account
In North Carolina, agency agreement laws require that ______.
A. Oral buyer/tenant agency agreements be "exclusive" and for a definite period
B. Agency agreements with property owners of any type of property be in writing within three
days of service
C. Oral agency agreements address all key aspects of the relationship, including agent
compensation
D. Oral agency agreements be reduced to writing within three days after an offer is accepted -
ANS C. Oral agency agreements address all key aspects of the relationship, including
agent compensation
Which of the following is a TRUE statement about broker compensation in North Carolina?
A. As long as a provisional broker has the supervising broker's permission, the PB may legally
receive brokerage compensation directly from clients.
B. Compensation provided to a broker from a settlement service provider is probably in violation
of RESPA.
,C. A selling bonus the listing firm pays to the buyer's agent may be disclosed to the buyer client
for the first time on the Closing Disclosure.
D. Written disclosure of compensation received from anyone other than a broker's client must
be made directly to the client by the closing day. - ANS B. Compensation provided to a
broker from a settlement service provider is probably in violation of RESPA.
The North Carolina Residential Rental Agreements Act states that ______.
A. The landlord may use constructive eviction if the tenant destroys the rental property
B. The landlord must refund all rent moneys to the tenant if the landlord breaches the lease
agreement
C. The tenant can stop paying rent and use that money to pay for required repairs in the unit
D. The tenant must property dispose of all waste and garbage in a safe and clean manner -
ANS D. The tenant must property dispose of all waste and garbage in a safe and clean
manner
Note: Under the North Carolina Residential Rental Agreements Act, both landlords and tenants
have certain duties. Among them, landlords must keep the property in a safe, habitable
condition, and tenants must properly dispose of garbage in a clean and safe manner.
A buyer and seller have signed 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. The buyer paid a $1,000 due diligence fee and a $5,000 earnest money deposit.
During the due diligence period, the buyer realized he wouldn't be approved for a mortgage, so
he canceled the contract according to its terms. Which of the following statements BEST
describes what happens to the money?
A. The buyer gets the due diligence fee and EMD back.
B. The buyer gets the due diligence fee back, and the seller keeps the EMD.
C. The seller keeps the due diligence fee, and the buyer gets the EMD back.
D. The seller keeps the due diligence fee and the EMD. - ANS C. The seller keeps the
due diligence fee, and the buyer gets the EMD back.
Note: Due diligence is the buyer's chance to investigate the property and transaction. By paying
the due diligence fee to the seller, buyers have "bought" the right to terminate the contract for
any reason or no reason, as long as it's done before the due diligence period ends. If the buyer
terminates during the DDP, the buyer's earnest money will be refunded to the buyer, but the
seller gets to keep the due diligence fee.
In North Carolina, which of the following describes a situation in which a broker who's in charge
of a trust account would be permitted to disburse disputed trust funds?
A. It's been 90 days since the date the dispute was filed, allowing the broker to disburse the
funds as originally stated in the transaction parties' written agreement.
, B. It's been one year from since the date the dispute was filed, which means the broker may
disburse the funds as originally stated in the transaction parties' written agreement.
C. The broker receives an order from the North Carolina Real Estate Commission.
D. The broker receives a written release from both parties to disburse the funds. - ANS D.
The broker receives a written release from both parties to disburse the funds.
Note: A broker who's holding disputed trust funds may disburse the funds after either receiving a
written release from both parties, or after receiving a court order detailing disbursement
instructions. Alternately, the funds may be given to a clerk of the local superior court, who will
determine who gets what.
What is the license year period in North Carolina?
A. August 1 through July 31
B. January 1 through December 31
C. July 1 through June 30
D. June 1 through May 31 - ANS C. July 1 through June 30
Which North Carolina broker's license will be inactive as of the first day of the next licensing
year?
A. Craig, a broker-in-charge who's a solo practitioner
B. Denise, a provisional broker who's associated with Flying High Realty
C. Freida, a broker who paid a renewal fee but didn't complete her CE before June 10
D. George, a broker-in-charge who supervises other brokers but no longer actively sells real
estate - ANS C. Freida, a broker who paid a renewal fee but didn't complete her CE
before June 10
In North Carolina, designated agency cannot be used if ______.
A. A broker-in-charge is one of the designated agents
B. A designated agent of one party knows confidential information about the opposing party
C. A provisional broker is one of the designated agents
D. The firm is acting as a dual agent in the transaction - ANS B. A designated agent of
one party knows confidential information about the opposing party
Which of the following is the best example of first substantial contact in North Carolina?
A. Handing out brokerage pens at the state fair
B. Responding to an email request for local median home prices
C. Responding to a request to show a listing to a potential buyer
D. Sending postcards about neighborhood sales to a target group - ANS C. Responding
to a request to show a listing to a potential buyer
