NC REAL ESTATE EXAM STATE PORTION
QUESTIONS WITH 100% ACCURATE ANSWERS
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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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. -
Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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. - Accurate answers 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.
Under the NC Machinery Act, which of the following is a TRUE statement about North Carolina real
property taxes?
A: They are not levied on an ad valorem basis.
B: They become a lien on the property on September 1st.
C: They become a lien on the property on January 1st and are due on September 1st
D: The Machinery Act requires reappraisal of the property every four years. - Accurate answers C:
They become a lien on the property on January 1st and are due on September 1st
Jane is a non-provisional broker who is affiliated with ABC Realty. Jane wants to form an LLC entity for
legal or tax purposes and have her BIC make her commission checks payable to her LLC. Which of the
following is correct?
A: broker affiliated with a firm is prohibited from forming their own entity
B: Jane must obtain a firm license for the LLC
C: The LLC must have a Broker-in-Charge
D: Only provisional brokers are permitted to have a separate entity - Accurate answers B: Jane
must obtain a firm license for the LLC
QUESTIONS WITH 100% ACCURATE ANSWERS
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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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. -
Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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 - Accurate answers 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. - Accurate answers 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.
Under the NC Machinery Act, which of the following is a TRUE statement about North Carolina real
property taxes?
A: They are not levied on an ad valorem basis.
B: They become a lien on the property on September 1st.
C: They become a lien on the property on January 1st and are due on September 1st
D: The Machinery Act requires reappraisal of the property every four years. - Accurate answers C:
They become a lien on the property on January 1st and are due on September 1st
Jane is a non-provisional broker who is affiliated with ABC Realty. Jane wants to form an LLC entity for
legal or tax purposes and have her BIC make her commission checks payable to her LLC. Which of the
following is correct?
A: broker affiliated with a firm is prohibited from forming their own entity
B: Jane must obtain a firm license for the LLC
C: The LLC must have a Broker-in-Charge
D: Only provisional brokers are permitted to have a separate entity - Accurate answers B: Jane
must obtain a firm license for the LLC
