NC Real Estate Exam Study Guide
QUESTIONS WITH CORRECT ANSWERS
NEWEST REVIEW
When did it become mandatory to have a license to do real estate? - ANSJuly 1, 1957
Who issues licenses? - ANSNC real estate commission
Do you have to be licensed to get paid for referrals? - ANSYes, you must have an active
license
Brokerage activities requiring a license - ANS1. Listing/offering to list real estate for sale/rent
2. Selling/buying or offering to sell/buy
3. Leasing/renting or offering to lease/rent
4. Conducting/offering to conduct a real estate auction
5. Selling/buying/leasing/assigning/exchanging interest in real estate in connection w/sale or
purchase of business
Activities exempt from licensing requirement - ANS1. Owners/lessors
2. Attorney-in-fact
3. Receiver, trustee, guardian, administrator, executor, person acting under court order
4. Attorney who is a member of the NC state bar
5. Salaried employee of broker
6. Business entity
Allowed activities of unlicensed, salaried employee - ANS1. Receive/forward calls and
messages to broker
2. Submit listings/changes compiled by broker to MLS
3. Get public records
4. Place for sale signs and lock boxes on property
5. Deliver and pick up documents
6. Give basic info to prospective buyers
7. Coordinate and confirm appointments
8. Show rental properties and fill out leases
9. Type offers, contracts, and leases that are preprinted
10. Record and deposit earnest money
11. Help assemble closing documents
,12. Give commission checks
Broker - ANSUs! In charge
Provisional broker - ANSEntry level. Must be supervised by BIC. Temporary status. Must
complete PLE to bc broker
Applies to anyone who was issued a license on or after April 1 2006
BIC - ANSSupervises provisional brokers at a certain office. Every office must have one
Separate license category
BIC qualifications - ANSActive license
2 years full-time or 5 years part-time equivalent
Complete 12 hr BIC course within 120 days of designation
Limited non-resident commercial broker - ANSMust be affiliated with an NC firm and
supervised by an NC broker
Separate license
Firm license - ANSLicense for business entity
Purpose of NC real estate commission - ANSTo protect the public from real estate brokers
How many members are there in the commission? - ANS9 members
Who appoints members to the NC real estate commission? - ANS7 appointed by Governor
1 by general assembly upon recommendation of President pro tempore of Senate
1 by general assembly upon recommendation of speaker of house of representatives
How many members of the commission must be licensed real estate brokers? - ANS3
How many members of the commission must be members of the public who aren't real estate
licensed? - ANS2
How long are terms of members on the commission? - ANS3 years
How many members' terms expire every year? - ANS3
Who elects chairman? - ANSMembers
How long is the chairman's term? - ANSOne year
Who removes members if they are found guilty of misconduct, incompetency, or willful neglect?
- ANSThe governor
,Who fills vacancies in the commission? - ANSThe governor
What are the powers of the commission? - ANS1. Licensing brokers and firms
2. Registering time share projects
3. Establishing and administering PLE and CE programs
4. Providing education and info on real estate to licensees and to the public
5. Regulating business activity of brokers and firms
6. Disciplining violators of the law or of the commission rules
What are the specific disciplinary measures that the commission can take? - ANS1. Reprimand
2. Censure
3. Suspend license
4. Revoke license
5. Seek injunctive relief
Ways to prove you are licensed? - ANS1. Renewal pocket card
2. License certificate
Where are renewal pocket cards kept? - ANSFor a broker - on their person
For a firm - at the firm
Where are license certificates kept? - ANSFor a BIC - in each office where they are BIC
For a firm - in each office maintained by firm
Where should licensees put their license number as proof of licensure? - ANSOn agency
contracts and disclosures
How long do licensees have to submit a change of name or address? - ANSWithin 10 days of
change
How long do licensees have to report criminal convictions? - ANSWithin 60 days of final
judgment
What day do licenses expire? - ANSJune 30th
When should you renew your license? - ANSWithin 45 days prior to expiration
How do you renew your license? - ANSFile an application and pay the license fee of $30 to the
commission
Who sets the renewal fee? - ANSThe commission
What is the maximum amount that the renewal fee can be? - ANS$50
, Can't increase more than $5 within a 12 month period
Fee for reinstatement of expired license - ANS$55
How long does a licensee have to reinstate an expired license? - ANS6 months
Fee for duplicate licenses? - ANS$5
Fee for license history copy? - ANS$10
What can happen if your payment form to the commission for fees due is invalid? - ANSYour
license can be denied, suspended, or revoked
CE requirements - ANS8 hrs per year
CE for BICs - ANSMust take a special 4 hr course
Do you have to take CE if you're inactive? - ANSNo, you can defer it
Fee for course application for sponsor - ANSNot to exceed $125 per course
PLE for provisional brokers - ANS90 hrs within 3 years of licensure
Requirements for agency contracts with seller - ANSIn writing before services are provided and
signed by all parties when contract is formed
Must give written disclosure that they represent seller if they start to work with the buyer
Requirements for agency contracts with POA - ANSIn writing and signed by all parties
Requirements for agency contracts with buyer - ANSExpress, in writing and signed no later
than time that buyer makes an offer (can be an oral contract up until offer is made)
If agreement restricts buyer/tenant to only working with said agent - must be in writing and
signed upon contract formation
Requirements for written agreements - ANS1. Exist for definite amount of time
2. Terminate without notice at end of specified time
3. License number of agent
4. Non-discrimination and fair housing provision
What is an exception to the rule for agency contracts stating that they must terminate at a
specific time? - ANSContracts with a landlord to find tenants may renew with the option for the
landlord to terminate at the end of each period
Fair housing provision protects: - ANSRace, color, religion, sex, origin, handicap, familial status
QUESTIONS WITH CORRECT ANSWERS
NEWEST REVIEW
When did it become mandatory to have a license to do real estate? - ANSJuly 1, 1957
Who issues licenses? - ANSNC real estate commission
Do you have to be licensed to get paid for referrals? - ANSYes, you must have an active
license
Brokerage activities requiring a license - ANS1. Listing/offering to list real estate for sale/rent
2. Selling/buying or offering to sell/buy
3. Leasing/renting or offering to lease/rent
4. Conducting/offering to conduct a real estate auction
5. Selling/buying/leasing/assigning/exchanging interest in real estate in connection w/sale or
purchase of business
Activities exempt from licensing requirement - ANS1. Owners/lessors
2. Attorney-in-fact
3. Receiver, trustee, guardian, administrator, executor, person acting under court order
4. Attorney who is a member of the NC state bar
5. Salaried employee of broker
6. Business entity
Allowed activities of unlicensed, salaried employee - ANS1. Receive/forward calls and
messages to broker
2. Submit listings/changes compiled by broker to MLS
3. Get public records
4. Place for sale signs and lock boxes on property
5. Deliver and pick up documents
6. Give basic info to prospective buyers
7. Coordinate and confirm appointments
8. Show rental properties and fill out leases
9. Type offers, contracts, and leases that are preprinted
10. Record and deposit earnest money
11. Help assemble closing documents
,12. Give commission checks
Broker - ANSUs! In charge
Provisional broker - ANSEntry level. Must be supervised by BIC. Temporary status. Must
complete PLE to bc broker
Applies to anyone who was issued a license on or after April 1 2006
BIC - ANSSupervises provisional brokers at a certain office. Every office must have one
Separate license category
BIC qualifications - ANSActive license
2 years full-time or 5 years part-time equivalent
Complete 12 hr BIC course within 120 days of designation
Limited non-resident commercial broker - ANSMust be affiliated with an NC firm and
supervised by an NC broker
Separate license
Firm license - ANSLicense for business entity
Purpose of NC real estate commission - ANSTo protect the public from real estate brokers
How many members are there in the commission? - ANS9 members
Who appoints members to the NC real estate commission? - ANS7 appointed by Governor
1 by general assembly upon recommendation of President pro tempore of Senate
1 by general assembly upon recommendation of speaker of house of representatives
How many members of the commission must be licensed real estate brokers? - ANS3
How many members of the commission must be members of the public who aren't real estate
licensed? - ANS2
How long are terms of members on the commission? - ANS3 years
How many members' terms expire every year? - ANS3
Who elects chairman? - ANSMembers
How long is the chairman's term? - ANSOne year
Who removes members if they are found guilty of misconduct, incompetency, or willful neglect?
- ANSThe governor
,Who fills vacancies in the commission? - ANSThe governor
What are the powers of the commission? - ANS1. Licensing brokers and firms
2. Registering time share projects
3. Establishing and administering PLE and CE programs
4. Providing education and info on real estate to licensees and to the public
5. Regulating business activity of brokers and firms
6. Disciplining violators of the law or of the commission rules
What are the specific disciplinary measures that the commission can take? - ANS1. Reprimand
2. Censure
3. Suspend license
4. Revoke license
5. Seek injunctive relief
Ways to prove you are licensed? - ANS1. Renewal pocket card
2. License certificate
Where are renewal pocket cards kept? - ANSFor a broker - on their person
For a firm - at the firm
Where are license certificates kept? - ANSFor a BIC - in each office where they are BIC
For a firm - in each office maintained by firm
Where should licensees put their license number as proof of licensure? - ANSOn agency
contracts and disclosures
How long do licensees have to submit a change of name or address? - ANSWithin 10 days of
change
How long do licensees have to report criminal convictions? - ANSWithin 60 days of final
judgment
What day do licenses expire? - ANSJune 30th
When should you renew your license? - ANSWithin 45 days prior to expiration
How do you renew your license? - ANSFile an application and pay the license fee of $30 to the
commission
Who sets the renewal fee? - ANSThe commission
What is the maximum amount that the renewal fee can be? - ANS$50
, Can't increase more than $5 within a 12 month period
Fee for reinstatement of expired license - ANS$55
How long does a licensee have to reinstate an expired license? - ANS6 months
Fee for duplicate licenses? - ANS$5
Fee for license history copy? - ANS$10
What can happen if your payment form to the commission for fees due is invalid? - ANSYour
license can be denied, suspended, or revoked
CE requirements - ANS8 hrs per year
CE for BICs - ANSMust take a special 4 hr course
Do you have to take CE if you're inactive? - ANSNo, you can defer it
Fee for course application for sponsor - ANSNot to exceed $125 per course
PLE for provisional brokers - ANS90 hrs within 3 years of licensure
Requirements for agency contracts with seller - ANSIn writing before services are provided and
signed by all parties when contract is formed
Must give written disclosure that they represent seller if they start to work with the buyer
Requirements for agency contracts with POA - ANSIn writing and signed by all parties
Requirements for agency contracts with buyer - ANSExpress, in writing and signed no later
than time that buyer makes an offer (can be an oral contract up until offer is made)
If agreement restricts buyer/tenant to only working with said agent - must be in writing and
signed upon contract formation
Requirements for written agreements - ANS1. Exist for definite amount of time
2. Terminate without notice at end of specified time
3. License number of agent
4. Non-discrimination and fair housing provision
What is an exception to the rule for agency contracts stating that they must terminate at a
specific time? - ANSContracts with a landlord to find tenants may renew with the option for the
landlord to terminate at the end of each period
Fair housing provision protects: - ANSRace, color, religion, sex, origin, handicap, familial status
