NC Post-Licensing 303 Exam
A team may not use their name in advertising if - ANSWER-the entity has no BIC
PBs may only affiliate with two BICs if, - ANSWER-The BICs are with 2 different firms and in the same
physical location and acting as co-listing/selling agents.
Fair housing in North Carolina is enforced by? - ANSWER-NC Human relations commission.
In NC the disciplinary process begins with? - ANSWER-The filing of a complaint
Upon receipt of a complaint, NCREC is required to - ANSWER-investigate
An investigation results in - ANSWER-a letter of inquiry
Respondents of a letter of inquiry must respond to NCREC withing - ANSWER-14 days
Step by step plan for responding to letter of inquiry - ANSWER-- Review the file
- Write a narrative response
- Attach documents
- Identify witnesses
NCREC may impose any of the following sanctions on a licensee as a result of a disciplinary investigation;
- ANSWER-- License revocation
- License suspension
- Reprimand
- Conditions, restrictions, on the license
When a provisional broker receives a letter of inquiry, who will be notified, - ANSWER-BIC
,BIC is required to exercise what to provisional brokers? - ANSWER-Active and direct supervision.
If complaint is filed against a full broker, the BIC will be named if the complaint falls within one of the
following 5 categories or there is indication of the BICs involvement; - ANSWER-1. Agency
2. Active and current licensure
3. Advertising
4. Trust accounts
5. Transaction files
A licensee may not earn compensation when their license is inactive or expired however; - ANSWER-A
licensee can receive compensation that was earned when the license was current and active.
A BIC may not pay a licensees entity unless that entity - ANSWER-has a firm license
The only exception of when a licensee can provide compensation or anything of value to an unlicensed
person in NC is payment to a - ANSWER-Travel agent
Licensees may always share compensation with parties to the transaction provided that: - ANSWER--
There is written disclosure and consent
- Subject to lender approval
- Disclosed on CD
Compensation issues that ought to be included and reviewed by licensees and the firm in the brokers
firm employment agreement; - ANSWER-- Commision splits
- Receipts of bonuses
- Additional fees
- Handling of referrals
- Payment upon termination
, Brokerages may pay referral fees in any state if the person to whom the referral is being paid has a -
ANSWER-current and active license in any state
When a referral is made, what documents should be in the brokers file? - ANSWER-1. Written
documentation regarding the fee
2. Proof of licensure
3. Copy of W9 for broker issuance of a 1099
The payment of buyer-broker co-op fees is dictated by the policies of? - ANSWER-Local MLS rules and
policies
The receipt of all compensation requires - ANSWER-Disclosure to principal and consent by the principal.
RESPA prohibits the payment of.. - ANSWER-Kickbacks to settlement service providers.
The federal RESPA statute applies to.. - ANSWER-1-4 Unit residential properties with a federally related
loan.
What transactions do RESPA not apply to? - ANSWER-- Vacant land transactions
- Cash transactions
- Seller financed transactions
- Commercial transactions
When a real estate brokerage has co-ownership of different settlement service providers, it is called an -
ANSWER-ABA (affiliated business arrangement) or a CBA (controlled business arangement)
ABAs and CBAs are permitted as long as there is - ANSWER-- Disclosure of the relationship
- Can't force the use
- Must disclose the fee's
A team may not use their name in advertising if - ANSWER-the entity has no BIC
PBs may only affiliate with two BICs if, - ANSWER-The BICs are with 2 different firms and in the same
physical location and acting as co-listing/selling agents.
Fair housing in North Carolina is enforced by? - ANSWER-NC Human relations commission.
In NC the disciplinary process begins with? - ANSWER-The filing of a complaint
Upon receipt of a complaint, NCREC is required to - ANSWER-investigate
An investigation results in - ANSWER-a letter of inquiry
Respondents of a letter of inquiry must respond to NCREC withing - ANSWER-14 days
Step by step plan for responding to letter of inquiry - ANSWER-- Review the file
- Write a narrative response
- Attach documents
- Identify witnesses
NCREC may impose any of the following sanctions on a licensee as a result of a disciplinary investigation;
- ANSWER-- License revocation
- License suspension
- Reprimand
- Conditions, restrictions, on the license
When a provisional broker receives a letter of inquiry, who will be notified, - ANSWER-BIC
,BIC is required to exercise what to provisional brokers? - ANSWER-Active and direct supervision.
If complaint is filed against a full broker, the BIC will be named if the complaint falls within one of the
following 5 categories or there is indication of the BICs involvement; - ANSWER-1. Agency
2. Active and current licensure
3. Advertising
4. Trust accounts
5. Transaction files
A licensee may not earn compensation when their license is inactive or expired however; - ANSWER-A
licensee can receive compensation that was earned when the license was current and active.
A BIC may not pay a licensees entity unless that entity - ANSWER-has a firm license
The only exception of when a licensee can provide compensation or anything of value to an unlicensed
person in NC is payment to a - ANSWER-Travel agent
Licensees may always share compensation with parties to the transaction provided that: - ANSWER--
There is written disclosure and consent
- Subject to lender approval
- Disclosed on CD
Compensation issues that ought to be included and reviewed by licensees and the firm in the brokers
firm employment agreement; - ANSWER-- Commision splits
- Receipts of bonuses
- Additional fees
- Handling of referrals
- Payment upon termination
, Brokerages may pay referral fees in any state if the person to whom the referral is being paid has a -
ANSWER-current and active license in any state
When a referral is made, what documents should be in the brokers file? - ANSWER-1. Written
documentation regarding the fee
2. Proof of licensure
3. Copy of W9 for broker issuance of a 1099
The payment of buyer-broker co-op fees is dictated by the policies of? - ANSWER-Local MLS rules and
policies
The receipt of all compensation requires - ANSWER-Disclosure to principal and consent by the principal.
RESPA prohibits the payment of.. - ANSWER-Kickbacks to settlement service providers.
The federal RESPA statute applies to.. - ANSWER-1-4 Unit residential properties with a federally related
loan.
What transactions do RESPA not apply to? - ANSWER-- Vacant land transactions
- Cash transactions
- Seller financed transactions
- Commercial transactions
When a real estate brokerage has co-ownership of different settlement service providers, it is called an -
ANSWER-ABA (affiliated business arrangement) or a CBA (controlled business arangement)
ABAs and CBAs are permitted as long as there is - ANSWER-- Disclosure of the relationship
- Can't force the use
- Must disclose the fee's
