Unit 1 - Flashcards (from LTP)

Question 1

What are the 6 activities that trigger a license?

Answer 1

1. Listing real estate for sale or rent for others (listing)
2. Selling or buying real estate for others (selling)
3. Leasing or renting real estate for others (leasing)
4. Conducting a real estate auction for others (auctioning)
5. Selling, buying, leasing, assigning or exchanging with the sale or purchase of a business (exchanging)
6. Referring a party to a real estate licensee, for compensation (referring)

Question 2

Difference between a broker and a realtor?

Answer 2

Realtor = member of the Realtor Association

Not all Brokers are Realtors, but all Realtors are Brokers

Question 3

Difference between and employee and independent contractor?

Answer 3

An employee must follow the direction of the employer. The employers can set hours/activities.

An independent contractor pays payroll taxes and sets hours/activities.

Question 4

What are the 8 exemptions from License requirements?

Answer 4

1. Business entity FSBO/FLBO or authorized employee/officer
2. Power of Attorney
3. Attorney at Law (in area of practice)
4. Receiver, trustee, guardian, administrator, executor or other court appointed party
5. Trustee acting under trust agreement or deed of trust
6. Certain salaried employees of a broker-property manager
7. FSBO/FLBO
8. Housing authority

Question 5

What are the 14 activities an unlicensed assistant can perform with supervision?

Answer 5

1-9 and 11. Secretary duties (answer phones, create flyers, provide information, at the direction of the licensee)

• 10. Show property for rent and execute pre-printed lease forms
• 12. Handle trust account deposits
      
      13. Assist with assembling documents for closing
      14. Compute commission checks

Question 6

What are the 3 licenses issued in North Carolina?

Answer 6

1. Broker license (provisional, non-provisional, broker-in-charge)
2. Firm license (required for any entity other than sole proprietorship)
3. Limited Non-Resident Commercial Broker’s license

Question 7

How does one obtain a limited non-resident commercial license?

Answer 7

1. License in good standing in another state
2. Affiliate with an NC Broker (not BIC or Brokerage) – notification of Broker Affiliation and Brokerage Cooperation Agreement
3. Notify the Commission

Question 8

Why would a license be expired?

Answer 8

Failed to pay renewal fee

Question 9

What keeps a license current?

Answer 9

Paid renewal fee by June 30th

Question 10

What keeps a license current or causes it to expire?

Answer 10

Not paying

Currency

$$$

Question 11

What are the requirements to be an Active broker?

Answer 11

Affiliation and Education

Provisional broker must be affiliated with a BIC

Question 12

When is continuing education due?

Answer 12

June 10

Question 13

When is post licensing required to be completed?

Answer 13

Within 18 months

Question 14

What are the qualifications to be a BIC?

Answer 14

Non-provisional license

2 years full-time experience or equivalent over past 5 years

Declare with commission and take 12-hour BIC course within 120-days

Question 15

What are BIC duties?

Answer 15

3 A’s and 2 T’s + PB supervision

Agency
Advertising
Active status

Trust accounts
Transaction files

Direct supervision of provisional-brokers