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Real Estate Pre-Licensing > Unit 1.1 - License (My Flashcards) > Flashcards

Unit 1.1 - License (My Flashcards)

From my notes

1
Q

Who needs a real estate license?

A

A person and/or a business is GETTING PAID or promised to be paid to PERFORM REAL ESTATE ACTIVITIES for OTHERS (someone else).

Three criteria must be present:

  • getting paid
  • performing a real estate activity
  • for someone else
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2
Q

John does not have a real estate license and is purchasing a home. He decides he does not need a buyer’s agent. Is it a violation for him to be paid for the transaction?

A

No, it is not a violation. (not for someone else)

All three must be present.

  • getting paid
  • performing a real estate activity
  • for someone else
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3
Q

Jane is not licensed in real estate. She offers to list her neighbor’s home and handle the transaction for free, because the neighbor is a good friend. Is this a violation of NC Real Estate Law?

A

No, this is not a violation of NC License Law and is allowable. (she is not getting paid)

Why? All three must be present:

  • getting paid
  • performing a real estate activity
  • for someone else
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4
Q

Bob owns an apartment complex and informs all of his current residents that he will give anyone who brings him a new tenant a free month of rent. Is this allowed in NC License Law?

A

Yes, this would be a violation of license law.

Bob doesn’t need a license (he’s paying money out). As a tenant you must have a license to be paid.

Are his current tenants conducting a real estate service – yes
Are they being compensated? – yes (free month of rent)
Are they being paid for bringing someone else? yes

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5
Q

What are the requirements to becoming licensed (provisional license) in NC?

A
  1. Must be 18 years old with qualified citizenship
  2. Pass 75-hour pre-license course (and exam) or provide equivalent experience as deemed by the Commission
  3. Submit application, pay fee and complete criminal background check
  4. Pass NC license exam
  5. Apply to and pass review of NCREC
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6
Q

Any person or business (entity) who is ___, ___, ___ requires a license?

A

Any person or business (entity) who is:

  1. doing real estate (REAL ESTATE ACTIVITIES)
  2. for someone else (OTHERS)
  3. for compensation (GETTING PAID)
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7
Q

When do real estate licenses expire?

A

June 30th

*must be renewed before then

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8
Q

What are the two real estate license types?

A

People (personal = broker) – a person who provides real estate services for someone else and they are being compensated for it, they get a broker license (People = Broker)

Business (company = firm) – a partnership, LLC, corporation, etc. who is offering real estate services for others and is getting paid for it, they get it a Firm license (Company = Firm)

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9
Q

Do you need to live in NC to have a NC real estate license? ?

A

No – You need not live in or even be in NC to carry an NC license. Doesn’t matter where the person is, it’s about the property/land.

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10
Q

What actions require having a real estate license in NC?

A

LL BEANS

List
Lease
Buy 
Exchange
Auction 
Negotiate 
Sell
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11
Q

What are the three questions to ask to determine if someone needs a real estate license?

A

is the person being PAID?
are they working for someone OTHER than themself?
is the person conducting REAL ESTATE ACTIVITIES?

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12
Q

What are the exceptions to requiring an NC license?

A
  • W-2 salaried employees who are employed by the owner of the real estate
  • W-2 salaried employees who are employed by licensed real estate brokers
  • Attorneys or trustees who are performing a legal service that somehow involves the sale or lease of real estate
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13
Q

A salaried employee of a broker, who does not have a license canNOT what?

A
  1. Negotiate leases or terms
  2. Create marketing/advertising materials without supervision/approval
  3. Refer others (for a fee)
  4. Solicit for clients for their boss (broker) by making calls, handing out cards, etc.
  5. SHOW FOR SALE properties to potential buyers (can show rentals)
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14
Q

Who needs an NC real estate license?

A

Any person or business (entity) who are:

  1. doing real estate (activities)
  2. for someone else (other than themself)
  3. for compensation (getting paid)

ALL THREE MUST OCCUR FOR LICENSE REQUIREMENT!

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15
Q

What is a Real Estate license?

A

Something that allows a person or company (entity/firm) to receive compensation

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16
Q

Who gets a Broker License? Who gets a Firm License?:

A
  • People are humans, so they get Broker’s licenses

- Companies are entities, so they need Firm licenses

17
Q

True or False: Firm Licenses expire.

A

True

18
Q

Delete this

A

Delete this

19
Q

Brendan does not have a real estate license. He goes and works for another real estate broker, Seth. Seth tells Brendan to go put a sign up at a new listing and then also tells him to go in the house and set up a few information items on the counter and then add things into the MLS. Does Brendan need a license?

A

YES: Doing real estate, for someone else, for compensation

20
Q

What are the three exceptions to the License Requirement Rule?

A

(1. ) W-2 salaried/hourly paid employees of the property owner.
* they can do {EVERYTHING}

(2. ) W-2 salaried/hourly paid employees of a real estate broker.
* CANNOT DO THREE THINGS:
* **cannot negotiate
* **cannot show homes for sale
* **cannot solicit

(3.) attorney’s whose legal work transitioned into real estate related activity

21
Q

Teddy, a W-2 salaried employee of property owner is:

  1. working for someone else
  2. doing real estate
  3. being paid

Is a license required?

A

License is NOT required.

Why – working for OWNER

22
Q

Juanita, a W-2 salaried of a real estate broker is within scope of authority.

  1. doing real estate activity
  2. being paid for it
  3. working for someone else

What would be out of scope and is a license required?

A
  1. Negotiate leases or terms
  2. Create marketing/advertising materials without supervision/approval
  3. Show for sale properties to potential buyers (can show rentals)
  4. Make referrals for a fee
  5. Solicit for clients for their boss (broker) by making calls, handing out cards, etc.
  6. Receive bonuses

A license is NOT required.

23
Q

Tamara is a licensed real estate broker who works for Capital Skyline Realty LLC. She receives a referral from Betsy in Greensboro of a buyer client who ends up purchasing a home with Tamara and Capital Skyline as buyer’s agents. Tamara insists on sending a $200 Amazon gift card to Betsy as a thank you for the referral.

Who needs a license in this scenario?

A

All parties named here need licensure.

Capital Skyline Realty LLC is (company)….is going to represent a buyer and be paid for it….that means “Active” licensure as a firm.

Tamara (a person) who will represent a buyer and be paid for it….that means Tamara needs an “Active” real estate broker’s license.

Betsy. Giving a referral to someone else is still performing a real estate service. Had Betsy done this for free, she wouldn’t need to be licensed. However, the gift card represents payment for a real estate service and she wasn’t representing herself….so she needs an “Active” real estate broker’s license.

24
Q

A listing broker who offers gift cards to anyone in a neighborhood who can recommend others thinking of selling in the current market.

Is this illegal? Why or why not?

A

This is illegal.

Is someone getting paid? Yes, people in neighborhood.
Is a real estate activity happening? Yes, referrals for selling is real estate activity.
Is it for someone else? Yes, recommending OTHER homeowners to the agent.

The listing broker is offering gift cards to any homeowners in a neighborhood who recommend OTHER homeowners to the agent. this is only possible if every homeowner in the neighborhood had a real estate license….because they would be getting paid (gift card) for recommending someone else in a real estate transaction.

25
Q

A listing broker who offers gift cards to anyone in a neighborhood who meets with the broker about listing their house for sale with the broker.

Is this illegal? Why or why not?

A

This is NOT illegal.

Is someone getting paid? Yes, people in neighborhood.
Is a real estate activity happening? Yes, referrals for selling is real estate activity.
Is it for someone else? No, it’s their house.

26
Q

A listing broker who offers gift cards to other licensed real estate brokers who refer potential sellers to them.

Is this illegal? Why or why not?

A

This is NOT illegal.

Is someone getting paid? Yes, licensed real estate brokers
Is a real estate activity happening? Yes, referring real estate business
Is it for someone else? Yes, potential sellers

They have a license so this in NOT illegal.

27
Q

A listing broker who offers gift cards to other licensed real estate brokers who refer potential sellers to them.

Is this illegal? Why or why not?

A

This is NOT illegal.

Is someone getting paid? Yes, licensed real estate brokers
Is a real estate activity happening? Yes, referring real estate business
Is it for someone else? Yes, potential sellers

They have a license so this in NOT illegal.

Real Estate Pre-Licensing (18 decks)

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