NC License Law and Rules
Questions with Accurate Answers
A real estate licensee with a newly issued provisional broker license
a. must complete annual continuing education requirements prior to the first
license renewal to keep the license active
b. does not have to complete any continuing education hours in the years that
post licensing coursework is completed
c. has a total of three years to complete all post-licensing requirements or the
license will be cancelled
d. must be affiliated with a supervising broker-in-charge to activate the license
correct answer D - must be affiliated with a supervising broker-in-charge to
activate the license
License Law and Rules Comments - p. 1: A provisional broker generally may
perform the same acts as a broker whose license is NOT on provisional status so
long as he or she is supervised by a broker who is a designated broker-in charge. A
provisional broker may not operate independently in any way.
In the course of selling a home to a buyer, a broker told the buyer that the home's
foundation was "solid as a rock", when he knew for a fact that it was slowly
sinking into the landfill on which it was built. In this situation, the broker's
conduct would be BEST defined as a
a. negligent omission
b. willful omission
c. negligent misrepresentation
d. willful misrepresentation correct answer D - willful misrepresentation
,"NC Laws-Rules Comments(p.4)": Misrepresentation or Omission [G.S. 93A-6(a)
(1)] Misrepresentation or omission of a material fact by a licensee is prohibited,
and this prohibition includes both "willful" and "negligent" acts. A "willful" act is
one that is done intentionally and deliberately, while a "negligent" act is one that
is done unintentionally. A "misrepresentation" is communicating false
information, while an "omission" is failing to provide or disclose information
where there is a duty to provide or disclose such information.
A licensee's pocket renewal card must be
a. carried by the licensee when conducting real estate brokerage activities
b. retained by the licensee at the licensee's residence
c. swiped through electronic lock boxes to gain entry to listed properties
d. prominently displayed in the office of the employing broker correct answer A -
carried by the licensee when conducting real estate brokerage activities
(NCREC Rules - p. 1) 21 NCAC 58A .0101 PROOF OF LICENSURE (a) The pocket card
issued by the Commission annually to each broker shall be retained by the broker
as evidence of licensure. Each broker shall produce a legible form of the card as
proof of licensure whenever requested while engaging in real estate brokerage.
Prior to suspending or revoking the real estate license of a provisional broker, the
Real Estate Commission will
a. hold a hearing where the licensee can be present with legal counsel
b. allow the provisional broker to remove provisional status
c. provide an attorney if the broker cannot afford one
d. require the licensee to correct any post-licensing and continuing education
deficiencies correct answer A - hold a hearing where the licensee can be present
with legal counsel
, Chapter 93A - Real Estate Law(p. 12) The Commission has power to take
disciplinary action. Upon its own initiative, or on the complaint of any person, the
Commission may investigate the actions of any person or entity licensed under
this Chapter, or any other person or entity who shall assume to act in such
capacity. If the Commission finds probable cause that a licensee has violated any
of the provisions of this Chapter, the Commission may hold a hearing on the
allegations of misconduct.
A real estate agent who is licensed as a provisional broker may be an associate of
a. more than one broker at a one time
b. only the firm that his supervising broker-in-charge represents
c. the buyer and seller in the same transaction as designated agent
d. any clients who employ the real estate agent directly correct answer B - only
the firm that his supervising broker-in-charge represents
In order to qualify as a broker-in-charge, a licensee must possess all of the
following EXCEPT
a. a real estate firm license
b. the minimum experience (or the equivalent) required by the Commission
c. an active broker license
d. the requisite character in order to be of no threat to the public correct answer
A - a real estate firm license
A broker cannot legally collect commissions from both the seller and the buyer
without
a. notifying both parties of this fact in writing after the sale has closed
Questions with Accurate Answers
A real estate licensee with a newly issued provisional broker license
a. must complete annual continuing education requirements prior to the first
license renewal to keep the license active
b. does not have to complete any continuing education hours in the years that
post licensing coursework is completed
c. has a total of three years to complete all post-licensing requirements or the
license will be cancelled
d. must be affiliated with a supervising broker-in-charge to activate the license
correct answer D - must be affiliated with a supervising broker-in-charge to
activate the license
License Law and Rules Comments - p. 1: A provisional broker generally may
perform the same acts as a broker whose license is NOT on provisional status so
long as he or she is supervised by a broker who is a designated broker-in charge. A
provisional broker may not operate independently in any way.
In the course of selling a home to a buyer, a broker told the buyer that the home's
foundation was "solid as a rock", when he knew for a fact that it was slowly
sinking into the landfill on which it was built. In this situation, the broker's
conduct would be BEST defined as a
a. negligent omission
b. willful omission
c. negligent misrepresentation
d. willful misrepresentation correct answer D - willful misrepresentation
,"NC Laws-Rules Comments(p.4)": Misrepresentation or Omission [G.S. 93A-6(a)
(1)] Misrepresentation or omission of a material fact by a licensee is prohibited,
and this prohibition includes both "willful" and "negligent" acts. A "willful" act is
one that is done intentionally and deliberately, while a "negligent" act is one that
is done unintentionally. A "misrepresentation" is communicating false
information, while an "omission" is failing to provide or disclose information
where there is a duty to provide or disclose such information.
A licensee's pocket renewal card must be
a. carried by the licensee when conducting real estate brokerage activities
b. retained by the licensee at the licensee's residence
c. swiped through electronic lock boxes to gain entry to listed properties
d. prominently displayed in the office of the employing broker correct answer A -
carried by the licensee when conducting real estate brokerage activities
(NCREC Rules - p. 1) 21 NCAC 58A .0101 PROOF OF LICENSURE (a) The pocket card
issued by the Commission annually to each broker shall be retained by the broker
as evidence of licensure. Each broker shall produce a legible form of the card as
proof of licensure whenever requested while engaging in real estate brokerage.
Prior to suspending or revoking the real estate license of a provisional broker, the
Real Estate Commission will
a. hold a hearing where the licensee can be present with legal counsel
b. allow the provisional broker to remove provisional status
c. provide an attorney if the broker cannot afford one
d. require the licensee to correct any post-licensing and continuing education
deficiencies correct answer A - hold a hearing where the licensee can be present
with legal counsel
, Chapter 93A - Real Estate Law(p. 12) The Commission has power to take
disciplinary action. Upon its own initiative, or on the complaint of any person, the
Commission may investigate the actions of any person or entity licensed under
this Chapter, or any other person or entity who shall assume to act in such
capacity. If the Commission finds probable cause that a licensee has violated any
of the provisions of this Chapter, the Commission may hold a hearing on the
allegations of misconduct.
A real estate agent who is licensed as a provisional broker may be an associate of
a. more than one broker at a one time
b. only the firm that his supervising broker-in-charge represents
c. the buyer and seller in the same transaction as designated agent
d. any clients who employ the real estate agent directly correct answer B - only
the firm that his supervising broker-in-charge represents
In order to qualify as a broker-in-charge, a licensee must possess all of the
following EXCEPT
a. a real estate firm license
b. the minimum experience (or the equivalent) required by the Commission
c. an active broker license
d. the requisite character in order to be of no threat to the public correct answer
A - a real estate firm license
A broker cannot legally collect commissions from both the seller and the buyer
without
a. notifying both parties of this fact in writing after the sale has closed
