Unit 1 - Real Estate Licensing

Question 1

What 6 activities trigger a need for a license?

Answer 1

L.L.B.E.A.N.S.

List, Lease, Buys, Exchanges, Auctions, Negotiates, and Sells

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

Question 2

What are 8 exemptions from license requirements?

Answer 2

1. Business entity FSBO/FLBO
2. Power-of-attorney
3. Attorney at Law
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 3

What activities can an unlicensed assistant perform with supervision?

Answer 3

• Secretarial Duties (answer phones, create flyers, provide information at the direction of the licensee
• Show property for rent and execute preprinted lease forms
• Handle trust account deposits and disbursements
• Assist with assembling documents for closing
• Compute commission checks
• There are 14 activities*

Question 4

What are the 3 licenses issued in North Carolina?

Answer 4

1. Broker (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 5

How do you obtain a Limited Non-Resident Commercial License?

Answer 5

1. License in good standing in another state
2. Affiliate with a NC Broker *NOT BIC OR BROKERAGE
3. Notify the Commission

Question 6

Explain Current vs. Expired License

Answer 6

Current License - Paid $45 renewal fee by June 30th

*Remember Current as in Currency $$

Expired - Failed to pay renewal fee

Question 7

Explain Active vs. Inactive

Answer 7

Active - Current License, Affiliation and Education

Inactive - Current License, No Affiliation or education

CE due by June 10th
Post-licensing Education due within 18 months

Question 8

Qualification to being a BIG

Answer 8

• Non-Provisional
• 2 Years full-time or equivalent or past 5 years
• Declare with Commission and take 12 hr BIC course with 120 days or preceding year

Question 9

What are the BIC’s duties?

Answer 9

3 A’s and 2 T’s

Agency, Advertising, Active Status

Trust Accounts and Transactions Files

Direct Supervision of PBs