License Law 02

The broker-in-charge of a real estate office is responsible for which of the following? I. The proper handling of all trust account related monies involving transactions at that office II. Assuring that all brokers and provisional brokers pay their annual NCREC renewal fee and complete continuing education classes by the required deadlines

• I only

• II only

• Both I and II

• Neither I nor II

In order to place trust monies in an interest-bearing account: I. The broker must have written permission from the client II. The written permission must stipulate who is to receive a portion of the interest

• I only

• II only

• Both I and II

• Neither I nor II

In North Carolina, the broker-in-charge must: I. Adequately supervise all activity of the provisional brokers in their office II. Adequately supervise all broker licensees in their office as to the handling of monies and compliance with agency, advertising and disclosure practices as well as compliance with all applicable laws.

• I only

• II only

• Both I and II

• Neither I nor II

Regarding nonresident commercial licensees, all of the following statements are TRUE, EXCEPT:

• They must affiliate with an in-state brokerage firm.

• They may enter North Carolina to assist a buyer or seller, but must sign a document allowing the NC Real Estate Commission to discipline the agent.

• They must take and successfully pass the state portion of the NC Real Estate Commission licensing exam before conducting business in North Carolina.

• They must place any trust monies they receive from clients or customers into the in-state brokerage firm's trust account.

A real estate agent is representing a buyer under a written buyer agency agreement. The buyer would like to see a builder's home. The builder is offering a $1,000 bonus to agents who sell at least 3 homes in the neighborhood. The real estate agent has not yet made a sale in that neighborhood. Which of the following actions should the agent take regarding disclosure of the bonus?

• Because the agent has not made a sale, they are not required to notify the buyer of a bonus until they are eligible for it.

• The agent should notify the buyer of the bonus at the time of contract.

• If the buyer client requests the agent share a portion of the bonus with them, the agent is to instruct them that it is illegal for the agent to share bonuses with unlicensed entities.

• The agent may notify the buyer of the bonus orally, but the bonus must be confirmed in writing before the client makes an offer to buy the home.

When dealing with multiple offers, which of the following is a correct statement regarding North Carolina statutes and rules?

• The existence of multiple offers is a material fact and must be disclosed

• An licensee is always permitted to disclose the terms of multiple offers to competing buyers

• A seller may not accept an offer when multiple offers exist without giving the other buyers an opportunity to increase their offers

• The existence of multiple offers is not a material fact and the terms and conditions of multiple offers can only be disclosed with the consent of the offeror.

A broker has received an offer from a prospective buyer on a property that the broker has listed for sale. How long does the broker have to deliver the offer to their seller/client?

• Immediately, but never later than 5 banking days

• Immediately, but never later than 5 calendar days

• Immediately, but never later than 3 banking days

• Immediately, but never later than 3 calendar days

Under the NC Machinery Act, which of the following is a TRUE statement about North Carolina real property taxes?

• They are not levied on an ad valorem basis.

• They become a lien on the property on September 1st.

• They become a lien on the property on January 1st and are due on September 1st

• The Machinery Act requires reappraisal of the property every four years.

All of the following are true regarding the North Carolina Working With Real Estate Agents brochure, EXCEPT:

• The consumer is not required to sign the brochure.

• If the first substantial contact is by phone, the brochure must be provided within 3 calendar days.

• The brochure's use is mandatory in all real estate transactions including residential sales, commercial transactions and lease transactions.

• The brochure must be given in all sales transactions at first substantial contact.

The North Carolina Working With Real Estate Agents brochure must be given:

• to property owners upon initial contact

• to all consumers upon initial contact

• only to clients in a real estate transaction at first substantial contact

• to all consumers in a sales transaction no later than first substantial contact