NC Real Estate Exam Questions

A _________ is a licensee who has the responsibility of supervision in real estate. A. Broker in charge B. Provisional broker C. Managing broker D. Broker - answer-A) Broker in charge A broker in charge has supervision over provisional brokers who are engaged in real estate at a specified office. A licensee may face disciplinary action if they do which of the following? A. Not meeting a sales quota B. Represents a real estate broker without their consent C. Fail to account for or remit monies coming into their possession D. B & C only - answer-D) B & C only Other reasons a licensee can face disciplinary action is accepting commission from anyone other than BIC or a broker, make false promises of character to influence, persuade of induce, and make willful or negligent misrepresentation or omission of any material fact. A real estate license in North Carolina is issues for a _______. A. 3- year period B. 5- year period C. 1- year period D. 10- year period - answer-C) 1- year period The North Carolina license expires every year on June 30th and the license can be renewed 45 days prior to the expiration. Ad valorem property tax rates can be adjusted every _______. A. Year B. 10 years C. 4 years D. 8 years - answer-A) Year The ad valorem property tax can be assessed every year. Ad valorem property tax is based on the value of property. North Carolina is an ad valorem property tax rate. All personal property in the state of North Carolina is appraised at its true value. Which of the following is an exception to this? A. Inventories owned by manufacturers B. Inventories owned by wholesalers C. Rental property D. A & B only - answer-D) A & B only Inventories owned by manufacturers, wholesalers, retailers and contracts, and non-business personal property are exempt. An unlicensed person is practicing real estate in North Carolina, what action can the NCREC take? A. Fine the person B. Issue a cease-and-desist order C. Pursue disciplinary action D. None of the above - answer-B) Issue a cease and desist order While the NREC does not have the authority to discipline a non-licensed person, they do have the power to issue a cease-and-desist order. How many hours of continuing education must be completed during the renewal period? A. 25 hours B. 5 hours C. 10 hours D. 8 hours - answer-D) 8 hours There are 8 hours of continuing education that must be completed to renew the license on active status. The courses must be completed by June 10th. How many members does the NCREC consist of? A. 7 B. 2 C. 1 D. 5 - answer-C) 9 The commission consists of 9 members and they serve 3 terms each. The terms are staggered. How many members of the NCREC are not allowed to be directly or indirectly involved in real estate or the real estate appraisal business? A. 7 B. 2 C. 1 D. 5 - answer-B) 2 2 members of the NCREC cannot be involved directly or indirectly in the real estate or real estate appraisal business. The rest are allowed to be directly and indirectly involved in real estate or real estate appraisal business. How many members of the NCREC must be licensed brokers? A. 7 B. 2 C. 3 D. 5 - answer-C) 3 3 members of the NCREC need to be licensed brokers, the rest of the members do not need to be licensed. In which of the following situations can a North Carolina broker file a lien to secure payment of brokerage fees? A. A listing agent for a $5 million property B. A person representing the lease of a manufacturing plant C. The sale of a shopping center by a listing agent D. The buyer's agent for a principal who is purchasing an office building - answer-C) The sale of a shopping center by a listing agent The listing agent who has listed a shipping center, is about to file a lien to secure unpaid payments of brokerage fees. North Carolina requires a broker to have a demand deposit in a ____________. A. Commercial bank B. Federally insured depository institutuion C. Credit union D. Savings and loan association - answer-B) Federally insured depository institution The account must be in a federally insured depository institution, which is a bank or savings association that insures the deposit by the federal deposit insurance corporation. North Carolina requires all counties to conduct reappraisals at lease every ______________. A. 4 years B. 8 years C. 2 years D. 10 years - answer-B) 8 years The machinery act states that all counties must conduct a reappraisal every 8 years. A majority of counties conduct reappraisals within 8 years and some conduct reappraisals every 4 years. Real estate applicants must provide proof that they possess ________. A. General moral character B. The ability to sell C. Organization skills D. Communication skills - answer-A) General moral character The applicant must possess general moral character as well as competency, honesty, truthfulness, and integrity. The _____ are exempt from licensure in a partnership. A. W-2 salaried employees B. General partners C. Managers D. Directors - answer-B) General partners In a partnership, the general partners are exempt from licensure, for an LLC it is the managers and for a corporation it is the directors, officers, and 1-2 salaried employees. The ______ is responsible for real estate licensing. A. Federal Real Estate Commission B. Housing and Urban Development C. North Carolina Real Estate Commission (NCREC) D. County Clerks Office - answer-C. North Carolina Real Estate Commission (NCREC) This commission is responsible for real estate licensees, education, and other resources regarding real estate in the state of North Carolina. The members of the NCREC shall not do which of the following? A. Make rules or regulations regulating commission salaries B. Suspend or revoke a license at any time C. Take disciplinary action against a licensee who makes any willful or negligent misrepresentation of any material fact D. NCREC is allowed to do all of the above - answer-A) Make rules or regulations regulating commission salaries. The NCREC cannot make rules or regulations regulating salaries or fees to be charged by licensees. They can, however revoke or suspend licenses and take disciplinary actions against a licensee. The NCREC has the authority to issue a _______ for the appearance of witnesses deemed necessary to testify. A. Subpoena B. Lawsuit C. Request D. None of the above - answer-A) A subpoena The NREC has the authority to issue a subpoena for the appearance of witnesses deemed necessary to testify before or investigated by the commission. They may also issue a subpoena for records, documents, or other materials necessary for the investigation. There is only one type of real estate license in North Carolina which is ___________. A. Broker B. Provisional broker C. Sales agent D. Broker in charge - answer-A) Broker While there is only one type of real estate license in North Carolina, there are numerous types of license status categories such as provision brokers and broker in charge. What is am octennial reappraisal? A. Grouping reappraisals by square footage and year built B. The statutory reappraisal of all real property in North Carolina for tax purposes C. Reappraisals done in groups of eight D. None of the above - answer-B. The statutory reappraisal of all real property in North Carolina for tax purposes. This is an octennial reappraisal and requires all counties to reappraise property within in a specified time period. Which non-profit trade association represents 46 local real estate associations in North Carolina and provides opportunities and resources that aid the members? A. North Carolina Association of Real Estate Brokers B. National Association of Real Estate Brokers C. The Association of Real Estate License Law Officials D. The National Association of Realtors - answer-A) North Carolina Association of Realtors This state organization is non-profit and was founded in 1921. It is one of the largest and most influential sate associations in the state. It has a membership of over 47,000 professionals. Which of the following duties can an unlicensed assistant in property management offices do? A. Sho