Appendix A

Question 1

The North Carolina Real Estate Commission may, after a hearing, are disciplinary action against a North Carolina licensee who has
I. violated any of the provisions of the North Carolina license law.
II. been disciplined by the South Carolina Real Estate Commission.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

Answer 1

a. I only

Question 2

A person needs an active North Carolina real estate license to rent and manage rental apartments for

a. himself or herself.
b. an out-of-state friend for no compensation.
c. a corporation as part of a salaried corporate job.
d. a relative who pays $100 per month for the help.

Answer 2

d. a relative who pays $100 per month for the help.

Question 3

A real estate license must be renewed no later than every

a. June 30
b. anniversary of licensure
c. June 10
d. December 31

Answer 3

a. June 30

Question 4

A licensee’s North Carolina real estate license may be suspended or revoked for

a. sharing commission with the buyer-client.
b. advertising properties in multiple counties.
c. buying a property for personal use that is listed by the licensee’s firm.
d. placing a For Sale sign on a property without a signed listing agreement.

Answer 4

d. placing a For Sale sign on a property without a signed listing agreement.

Question 5

All the following people need an active North Carolina real estate license EXCEPT

a. a court-ordered guardian selling property owned by his charge.
b. an attorney that serves as relief agent on Thursdays in a new homes subdivision.
c. a real estate assistant showing listed property to the buyer-clients of her broker-boss.
d. an on-site leasing agent that negotiates rental amounts when requested by potential tenants.

Answer 5

a. a court-ordered guardian selling property owned by his charge.

Question 6

If a licensee violates any of the provisions of the North Carolina Real Estate License Law, the North Carolina Real Estate Commission may do all the following EXCEPT

a. revoke the license permanently.
b. suspend the license for a specified period of time.
c. allow the license to remain active if a specified fine is paid.
d. require the licensee to take prescribed education courses before reinstatement of the license.

Answer 6

c. allow the license to remain active if a specified fine is paid.

Question 7

Which statement is TRUE regarding a broker license on provisional status?

a. The licensee must satisfy a 90-hour post licensing education requirement in order to remove the provisional status.
b. The provisional broker license is converted to a broker-in-charge license upon completion of post licensing requirements.
c. The licensee must complete at least one post licensing course no later than one year fro licensure in order to avoid cancellation of license.
d. The provisional license status may be removed by completing 16 hours of continuing education credits.

Answer 7

a. The licensee must satisfy a 90-hour post licensing education requirement in order to remove the provisional status.

Question 8

In North Carolina, all real estate brokers must

a. maintain a trust account.
b. belong to the local Association of REALTORS.
c. include their firm’s name in advertisements of a client’s property.
d. complete continuing education each year in order to keep the license current.

Answer 8

c. include their firm’s name in advertisements of a client’s property.

Question 9

An active non provisional real estate broker in North Carolina may

a. prepare deeds for seller-clients.
b. may interpret protective covenants for a buyer-client.
c. place an ad today for a listing that she anticipates getting next week.
d. split the commission with a buyer-client if it is disclosed to the lender and noted on the settlement statement.

Answer 9

d. split the commission with a buyer-client if it is disclosed to the lender and noted on the settlement statement.

Question 10

A real estate licensee received her first license in November 2017. If she wants to maintain active status, she must complete her continuing education requirements by

a. June 10, 2018.
b. end of November, 2018.
c. June 10, 2019.
d. November, 2020.

Answer 10

c. June 10, 2019.

Question 11

An actively-licensed provisional broker must

a. work under the supervision of a broker-in-charge.
b. complete continuing education requirements every year beginning with the second period of licensure.
c. complete three post licensing courses within three years of licensure.
d. do all of these.

Answer 11

d. do all of these.

Question 12

All North Carolina real estate licensees are legally bound by

a. the REALTORS Code of Ethics.
b. North Carolina Real Estate License Law.
c. both the REALTORS Code of Ethics and North Carolina Real Estate License Law.
d. neither the REALTORS Code of Ethics nor North Carolina Real Estate License Law.

Answer 12

b. North Carolina Real Estate License Law.

Question 13

Which individual below is exempt from needing a North Carolina real estate license when performing real estate services for others?

a. A nephew who finds a buyer for his uncle’s house and is paid a finder’s fee.
b. An individual who receives a gift certificate from a broker for referring the broker to a friend.
c. A salaried real estate assistant who shows listed property to interested buyer prospects.
d. An individual who offers his office complex for sale.

Answer 13

d. An individual who offers his office complex for sale.

Question 14

Appointments to the North Carolina Reast Estate Commission are made
I. by the Governor, the President Pro Tempore of the State Senate, and the Speaker of the State House of Representatives.
II. for three-year staggered terms.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

Answer 14

c. Both I and II

Question 15

The members of the North Carolina Real Estate Commission
I. must include at least three licensed real estate brokers.
II. form an arbitration appeal board for licensees dealing with compensations disputes.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

Answer 15

a. I only

Question 16

An unlicensed salaried employee of a broker may NOT

a. act as a courier to deliver documents.
b. show properties for sale.
c. assemble documents for closings.
d. confirm appointments for licensees.

Answer 16

b. show properties for sale.

Question 17

In North Carolina, a real estate licensee’s license expires if

a. continuing education requirements are not met by June 10.
b. renewal fees are not received by the North Carolina Real Estate Commission by June 30.
c. post licensing requirements have not been met by the license anniversary date.
d. the licensee is no longer supervised by a broker-in-charge.

Answer 17

b. renewal fees are not received by the North Carolina Real Estate Commission by June 30.

Question 18

In North Carolina, a written complaint against a licensee should be sent to the

a. Governor
b. Director of Commerce
c. Superintendent
d. North Carolina Real Estate Commission

Answer 18

d. North Carolina Real Estate Commission

Question 19

A property manager broker must deposit all rents collected for others into a trust account

a. within three banking days after receipt.
b. that cannot be an interest-bearing account.
c. unless directed otherwise by a party to the transactions.
d. that is reconciled on a quarterly basis.

Answer 19

a. within three banking days after receipt.

Question 20

Earnest money deposits other than cash must be deposited into the broker’s trust account

a. within 24 hours of their receipt.
b. only if the seller authorizes the broker to do so.
c. no later than three banking days following contact acceptance.
d. no later than three banking days after their receipt.

Answer 20

c. no later than three banking days following contact acceptance.

Question 21

All written agency agreements are required by license law to

a. contain a nondiscrimination provision.
b. describe the agent’s duties and list the authorizations given by the client.
c. include the individuals broker’s license number.
d. contain a nondiscrimination provision, describe the agent’s duties and list the authorizations given by the client, and include the individual broker’s license number.

Answer 21

d. contain a nondiscrimination provision, describe the agent’s duties and list the authorizations given by the client, and include the individual broker’s license number.

Question 22

Which of the following statements is NOT true?

a. A broker’s trust account must be a separate custodial account.
b. A property management trust account must provide for withdrawal on demand.
c. All trust account funds must be located in an insured banks of saving association lawfully doing business in North Carolina.
d. Brokers responsible for property management accounts, in additions to a trust account, must be bonded as required by Commission Rule.

Answer 22

d. Brokers responsible for property management accounts, in additions to a trust account, must be bonded as required by Commission Rule.

Question 23

A broker has authorized his bookkeeper to withdraw funds from his trust account. The bookkeeper embezzles an amount equal to less than 10% of the total balance of the trust account. Which of the following statements is TRUE?

a. Only the bookkeeper is liable for the misuse of the funds because the broker delegated this responsibility.
b. The broker is always responsible for the misuse of trust funds for which he maintains or is require to maintain custody.
c. Only the bookkeeper is liable for the misuse of the funds because the loss was for less than 10% of the entire balance.
d. The Commission will issue a letter to the owner of the trust funds, explaining the problem, and relieving the broker of responsibility.

Answer 23

b. The broker is always responsible for the misuse of trust funds for which he maintains or is require to maintain custody.

Question 24

A broker-in-charge must have

a. an active non provisional broker’s license.
b. a minimum of three years’ full-time real estate brokerage experience.
c. a bonded bookkeeper.
d. a trust account for each office he supervises.

Answer 24

a. an active non provisional broker’s license.

Question 25

A broker-in-charge is responsible for all the following EXCEPT

a. retention and maintenance of all records required by Commission Rule.
b. all advertising by or on behalf of the firm.
c. agency compliance by all licensees in the firm.
d. supervision of all provisional broker in the principal office and many branch offices.

Answer 25

d. supervision of all provisional broker in the principal office and many branch offices.

Question 26

A non provisional broker’s real estate license has been on inactive status for 12 years. The broker has taken no real estate education courses during that time. In order to activate the license, the broker would have to successfully complete

a. eight hours of continuing education for each inactive year.
b. all three post licensing courses.
c. 16 hours of continuing education, including the mandatory update course for the current year.
d. the state license exam because it has been more than 10 years.

Answer 26

c. 16 hours of continuing education, including the mandatory update course for the current year.

Question 27

A broker’s trust account must comply with all the following EXCEPT

a. it can be located in a credit union lawfully doing business in North Carolina.
b. it can include up to $100 of the broker’s money to cover bank charges.
c. it can be interest-bearing with full disclosure and permission of all parties that have fund in the account.
d. “trust account’ or “escrow account” must be preprinted on the checks and deposit slips.

Answer 27

a. it can be located in a credit union lawfully doing business in North Carolina.

Question 28

The broker serving as escrow agent may disburse disputed trust funds in all the following situations EXCEPT

a. the parties have signed a written disbursement plan.
b. at the direction of the court that heard the lawsuit between the parties.
c. when contract terms are very clear about who receives the funds.
d. when the broker send funds to county clerk of court after appropriate notification of the parties.

Answer 28

c. when contract terms are very clear about who receives the funds.

Question 29

To retain broker-in-charge eligibility, a broker must

a. maintain an active license at all times.
b. take the special continuing education class for brokers-in-charge every other year.
c. complete the 12 hour broker-in-charge course once every five years.
d. never have a break in his service as a broker-in-charge.

Answer 29

a. maintain an active license at all times.

Question 30

A broker who is a sole proprietor must designate himself or herself as a broker-in-charge

a. if the broker is involved in more than one transaction a year.
b. if the broker engages in an transaction where the broker is require to deposit and maintain monies belonging to others in a trust account.
c. if the broker refers consumers to brokers in North Carolina for a referral fee.
d. even if her or she supervises no licensees.

Answer 30

b. if the broker engages in an transaction where the broker is require to deposit and maintain monies belonging to others in a trust account.