Unit 1 - Real Estate Licensing

Question 1

Requires An Active Real Estate License

Answer 1

Selling real property for other for compensation
Activities (LLBEANing)
1. Listing real estate for sale or rent
2. Selling or buying real estate
3. Leasing or renting real estate
4. Conducting a real estate auction
5. Selling, buying, leasing, assigning, or exchanging with the sale ot purchase of a business
6. Referring a party to a real estate license (for others!! And for compensation!!)

Question 2

Triggers a Firm License

Answer 2

Partnership, LLC or corporation engaged in brokerage activity

Question 3

Post license education requirements

Answer 3

Completion of 3–30 hours course within 18 months of license and issuance to remain on active status

Question 4

How to obtain a nonresident commercial license

Answer 4

1. license in good standing in other state
2. affiliate with NC Broker (not BIC or brokerage)
3. Notify the commission

Question 5

Qualifications to be a BIC

Answer 5

Non-provisional 2 years full-time experience of equivocate over the past 5 years declare with commission and take 12 hr BIC course within 120 days

Question 6

3 licenses issued in North Carolina

Answer 6

1. Broker license (provisional, non-provisional, broker-in-charge)
2. Firm licenses (required for any firm other than sole proprietorship)
3. Limited non-resident commercial broker license

Question 7

Inactive provisional broker

Answer 7

Status of a license when a candidate passes a real estate exam

Question 8

BIC Duties

Answer 8

3 A’s, and 2 T’s, agency advertising, active status, trust accounts and transportation files, direct supervision of provisional brokers

Question 9

How to obtain a nonresident commercial license

Answer 9

1. Lessons in good standing in another state.
2. Affiliate with a NC broker (not BIC or brokerage)
3. Notify the commission

Question 10

Exemptions from license requirements

Answer 10

1. Business entity, FSBO/FLBO or authorized employee/officer
2. Power of attorney
3. Receiver, trustee, guardian administrator, executor, or other court appointed party
4. Trust acting under trust agreement or deed of trust
5. Certain salaried employees of a broker property manager
6. FSBO/FLBO
7. Housing Authority.

Question 11

Broker vs. Realtor

Answer 11

A realtor is a member of this realtor association not all brokers are realtors, but all realtors are brokers

Question 12

Employee vs. independent contractor

Answer 12

An employee must follow directions of the employer, the employer can set hours/actions. An independent contractor pays payroll, taxes, and hours/activities

Question 13

Current vs. Expired

Answer 13

Current license – paid by June 30

Expired – failed to pay renewal fee

Current vs Expired = Currency

Question 14

Triggers a BIC license

Answer 14

More than one broker engaged in real estate, hiring and unlicensed, assistant, marketing, or holding trust funds

Question 15

14 activities unlicensed assistant can perform with supervision

Answer 15

1-9 & 11 secretarial duties (answer phones great flyers provided information at the direction of the license
10. Show property for rent and execute pre-printed lease swarms.
12. Handle, trust, accounts, deposits, and disbursements.
13. Assist with assembling closing documents.
14. Compute commission check