Kap Real Estate Appendix A: North Carolina Real Estate License Law and Commission Rules Flashcards
In 1957, the North Carolina General Assembly enacted into law, effective July 1, 1957, the Real Estate Licensing Act, codified as Chapter 93A of the General Statutes of North Carolina.
this law created the North Carolina Real Estate Commission (NCREC) and empowered it to write and enforce reasonable rules and regulations concerning the business activities of real estate licensees. The real estate license applicant is required to be knowledgeable of the License Law and Commission Rules.
A provisional broker generally may perform the same acts as a nonprovisional broker as long as the provisional broker is supervised by a broker-in-charge. ( t/f)
True
An individual who sells one property a year for a neighbor does not need to acquire a North Carolina real estate license if the individual receives less than $500 for the service. (T/F)
False
The NCREC requires that anyone who provides a service of real estate for others for transactional compensation must be properly licensed—no matter how one is paid or how frequently one provides the service.
A limited nonresident commercial broker can reside in a state other than North Carolina but still engage in real estate transactions in North Carolina under some conditions. (T/F)
True
A limited nonresident commercial broker can reside in a state other than North Carolina but still engage in real estate transactions in North Carolina under some conditions, such as being supervised by an active North Carolina broker.
A salaried assistant who provides factual information about listings to prospective buyers does not need to have a North Carolina real estate license. (T/F)
True
A current licensee is one who takes any required post-licensing or continuing education course (T/F)
False
A current licensee is one who has paid his renewal fees on time.
A licensed individual can choose to be inactive (T/F)
True
An individual can voluntarily choose not to complete educational requirements (and thus become inactive voluntarily) and may also forget or be unable to do so (involuntary). However, an individual with an inactive license who fails to take appropriate education can lose his license to activate, depending on various circumstances.
A brokerage firm advertisement for a listed property on social media that reads “Contact Eric for more information about this property by clicking here” has fulfilled NCREC rules regarding advertising (T/F)
False
All advertising of brokerage services must have as a minimum the brokerage firm name (or the name of the sole proprietorship.)
A buyer wishes his brokerage/agent to add some special language to an offer. The broker does not have a form that will provide that language, so the broker drafts the language himself. This practice is acceptable and lawful. (T/F)
False
This practice is acceptable and unlawful because North Carolina brokers are not allowed to draft contract language.
All real estate licenses expire on June 10. (T/F)
False
All real estate licenses expire on June 30.
If a provisional broker fails to complete postlicensing courses by the appropriate time, the license will be placed on expired status. (T/F)
False
If a provisional broker fails to complete the postlicensing course by the appropriate time, the license will be placed on inactive status.
(T/F) A broker-in-charge must be a full broker with at least two years of full-time real estate brokerage experience within the last 10 years.
False
A broker-in-charge must be a full broker with at least two years of full-time real estate brokerage experience within the last five years.
(T/F) A firm has five different branch offices. There must be a BIC at each branch office.
True
A BIC must be present at any office where brokerage activities take place, so a BIC must be at each branch office.
(T/F) Escrow monies in the form of a check must be deposited within three days of receipt.
False
Escrow monies in the form of a check must be deposited into the escrow account within three days of the effective date of the contract.
(T/F) Brokers must maintain separate escrow accounts for tenant monies and for buyer monies.
False
Brokers can maintain one account for both tenant and buyer monies. However, brokers must maintain separate escrow accounts for different homeowners associations whose money they may manage.
(T/F) The principal purpose of the NCREC is to protect the public in real estate transactions involving brokers.
True
(T/F) The NCREC arbitrates compensation disputes among brokers and establish commission rates for North Carolina.
False
The NCREC does not arbitrate compensation disputes among brokers nor does it establish commission rates for North Carolina.
An employing broker who hires a broker or salesperson as an employee must
withhold Social Security taxes.
**Social Security taxes must be withheld from an employee’s pay.