WorksheetsLicense Law 01
Total questions: 80
Worksheet time: 3hrs 40mins
What is the first point at which a provisional broker may begin practicing real estate in North Carolina?
when the NCREC receives notification of the provisional broker's activation with a BIC
upon successful completion of all course work and required examinations
upon completion of all educational requirements
upon formal notification from the NCREC that the candidate has successfully passed the real estate examination and has been issued a license number
Once an applicant has passed the NC Licensing Examination, they are licensed, but their license is ___ until they affiliate with a brokerage.
inactive
illegible
ineligible
invalid
An unlicensed assistant may do all of the following activities, EXCEPT:
enter listings into the MLS
exhibit units for rent and provide tenants with information about the lease agreement
exhibit homes that are for sale and show the buyer around the home
fill in preprinted lease agreements and collect monies from prospective tenants, as long as the employee does not negotiate rents
With regard to timeshares, all of the following are true, EXCEPT:
A timeshare developer and broker must maintain records of sales, rentals or exchange transactions for a minimum of three years.
All monies received by a timeshare developer or broker must be deposited within three banking days of receipt and remain in the trust account for ten days from the date of sale or until cancellation by the purchaser, whichever occurs first.
Timeshares are not considered real estate and no license is required to sell time shares in North Carolina.
Any refunds due to a cancellation of a timeshare purchase will be refunded within 30 days following the date of execution of the contract.
Which of the following statements is true about timeshares?
They do not have to be registered with the NC Real Estate Commission.
They may be transferred prior to registering with the NC Real Estate Commission.
They must be registered and approved by the NC Real Estate Commission. They cannot be transferred or sold without that registration
The timeshare broker may be fined by the NC Real Estate Commission.
All of the following statements are correct regarding the NCREC, EXCEPT:
They shall be entitled to the services of the Attorney General of North Carolina.
They shall not make rules or regulations regulating commissions, salaries, or fees to be charged by licensees.
They shall make rules to allow a licensee to pay a travel agent who does not have a real estate license a referral fee.
They shall have the power to make reasonable bylaws, rules and regulations that are inconsistent with the provisions of the general statutes.
It is correct to say that the NC Real Estate Commission may not fine a real estate licensee. However, the NC Real Estate Commission may do which of the following?
order licensees to pay clients for damages caused and arbitrate disputes over fees
fine a timeshare developer up to $500 per violation of the Timeshare Act
revoke a broker's license if the broker fails to take the required number of continuing education hours per year
dictate the amount of commission brokers may charge their clients and resolve commission disputes between agents
General Statute 93A-2 states, in part, that a real estate broker is any person who, for compensation or valuable consideration or the promise thereof, lists or offers to list property. All of the following would constitute valuable consideration, EXCEPT:
a listing agent is promised a weekend trip to Myrtle Beach if the agent puts the home under contract before the end of the year
the owner of a jewelry store gives his buyer's agent a diamond bracelet as a way of saying thank you for the agent's hard work
a butcher offers a year's supply of top sirloin to his agent if they can purchase an investment property for 50% off the asking price
the neighbor brings fresh tomatoes from their garden and bakes their agent a fresh apple pie as a way of saying thank you
All of the following could result in disciplinary action by the NC Real Estate Commission for unworthiness or incompetence, EXCEPT:
making any willful or negligent misrepresentation
pursuing a course of making false promises
accepting commissions or valuable consideration as a provisional broker from any person other than your Broker In Charge
Attempting to take all of the post licensing courses in a single year
A provisional broker may always elect to complete post licensing classes on an earlier schedule than that required by the Commission
True
False
A provisional broker is subject to two separate education requirements. They must complete postlicensing education of 90 hours within 3 years from the date of licensure. When must a provisional broker complete their first 8 hour CE requirement?
Within 1 year of the date of licensure
At the conclusion of their post licensing education
At the time of the first renewal of their license
Prior to the 2nd renewal of their real estate license
A nonprovisional real estate licensee is on inactive status. They are NOT holding themselves out to be available to help others buy, sell, rent or auction property. A friend asks for their help in a real estate transaction. Which of the following is TRUE?
Because they did not actively advertise or solicit the business the licensee may assist their friend, but they will have to be paid directly, not through the brokerage firm.
The agent may assist their friend so long as they activate their license before the transaction closes and they are paid.
An agent who's license is inactive may not earn any fees or represent others in a real estate transaction.
Because the agent is a full broker they are not required to affiliate with a BIC and therefore the licensee may represent their friend and collect a fee.
In the event that a licensee's annual renewal fee is returned unpaid, the North Carolina Real Estate Commission may take all of the following actions, EXCEPT:
deny licensure renewal
suspend the agent's license
revoke the agent's license
fine the agent
All of the following would constitute an illegal action by an inactive licensee who is not affiliated with a firm, EXCEPT:
telling members of a networking club that they are a broker and offering members of the club their services
handing out business cards at a social gathering
telling a new acquaintance that they are a broker, but they are on inactive status
hosting an open house for another agent
Which of the following do not need a real estate license to sell property?
a corporation that owns property and is using an employee to sell the property
an auction house that deals in the sale of real property
an attorney who regularly and routinely assists others in the buying and selling of real property
an unlicensed assistant sitting in an open house
Which of the following is INCORRECT about the post licensing requirement of a provisional broker?
the due date of the post licensing education is the anniversary date of licensure
post licensing consists of three 30 hour courses which may be taken in any order and must be completed within 3 years of the date of licensure
post licensing courses end on June 10th and must be completed for the provisional broker to renew their license on June 30th
if a provisional broker does not complete post licensing by the deadlines their license will become inactive
___ end on June 10th and must be completed for the provisional broker to renew their license on June 30th
post licensing course
continuing education courses
initial license courses
provisional broker courses
If a provisional broker does not complete post licensing by the deadlines their license will become...
inactive
expired
revoked
invalid
post licensing consists of three ___ hour courses which may be taken in any order
30
60
90
180
post licensing must be completed within ___ years of the date of licensure
1
2
3
4
___ consists of three 30 hour courses which may be taken in any order and must be completed within 3 years of the date of licensure
post licensing
continuing education
prelicensing
provisional broker licensing
If a provisional broker does not complete the three 30-hour broker postlicensing courses within three years, what is their license status after the three-year period?
active
expired
cancelled
inactive
Failure to complete any required education will result in an ___ license.
inactive
expired
invalid
revoked
An ___ license occurs when a licensee fails to file their renewal or pay the license renewal fee.
expired
invalid
cancelled
inactive
If a licensee does not pay their renewal fee on or before June 30 of the year, what is the time period for the licensee to reinstate their license without the imposition of additional educational requirements?
30 days
60 days
6 months
6 days
When a licensee fails to renew their license, it becomes:
expired
invalid
inactive
lumpy
If a licensee does not pay their renewal fee on or before ___ of the year, the licensee has ___ reinstate their license without the imposition of additional educational requirements?
June 30 / 6 months
July 30 / 6 months
June 30 / 1 year
September 1 / 6 months
If an active provisional broker pays their renewal fee before their second renewal, but does not take their 8 hours of continuing education before their second renewal, what is their license status on July 1st?
Active
Inactive
Expired
Suspended
Failure to renew the license results in the license being:
expired
inactive
Failure to complete required education make the license:
inactive
expired
A corporation selling its own properties through the actions of its own salaried W2 employees:
is not required to have a firm license, but may not use its own employees
can use its own unlicensed employees, but must have a firm license
needs neither a firm license nor do its employees need to be licensed
need not have a license, but must affiliate with an NC broker-in-charge
In regard to real estate fees and commissions between brokerages and clients what is the role of the North Carolina Real Estate Commission:
only sets maximum limits on the fees and commissions
has no role in fees or commissions
only becomes involved when a complaint if filed
regulates the commissions exchanged between brokers, but not those exchanged with clients
All of the following are correct statements about the composition of the NCREC, EXCEPT:
there are 9 appointed members of the NC Real Estate Commission
the chairman of the Commission is elected by the Commission members
commission members serve 5 year terms
there are at least three licensees and at least two laypeople serving on the commission
All of the following are required in order to obtain a NC real estate license, EXCEPT:
a high school diploma
completing an application
successfully completing a 75 hour course and passing a school final examination
age of at least 18
All of the following are true when a real estate license is inactive due to a CE deficiency, EXCEPT:
the licensee must complete all CE for the current year and make up the past deficiency up to a maximum of 16 hours
the licensee must file an activation form once all CE is current
the licensee may not earn any commissions or referral fees while inactive
if the inactivity is for longer than 5 years the license will be considered expired
When a real estate license is inactive due to a CE deficiency, the licensee must:
complete all CE for the current year and make up the past deficiency up to a maximum of 16 hours
complete all CE for the past year and make up the past deficiency up to a maximum of 16 hours
complete all CE for the current year and make up the past deficiency up to a maximum of 18 hours
complete all CE for the fiscal year and make up the past deficiency up to a maximum of 16 hours
A licensee may remain on inactive status indefinitely. When returning to active status NCREC will only require a maximum of ___ and the filing of an activation form.
16 hours of CE
18 hours of CE
72 hours of post licensing
a $500 fine
Which of the following must have a NC real estate license?
A crier of sales
An investor who is purchasing rental properties and placing them back on the market for sale
The executor of an estate selling their parent's property and receiving a fee as the executor
An auctioneer
All of the following are requirements of licensure for a NC Real Estate license, EXCEPT:
Possess a social security number
Be a United States citizen
File a complete application and fee
Be a resident of North Carolina
An unlicensed individual who transacts real estate for another or participates in the sale, lease or exchange of another for compensation is subject to which of the following penalties?
They are guilty of a felony
They are guilty of a misdemeanor
They are subject to a fine of up to $10,000
They are subject to civil sanctions and a civil lawsuit
An individual licensed in another state may receive a waiver of the NC education requirement to complete the 75 hour Broker Prelicense course if they meet which of the following criteria:
They must have been licensed in another state for a minimum of 10 years
They must have taken another state's course within the last 5 years
Successful completion of another state's prelicense course of at least 75 hours within the last 3 years.
Be a resident of North Carolina
Judy is an unlicensed individual. Her parents are selling their own home as For Sale by Owner without the representation of a real estate licensee. While her parents are on vacation, Judy shows the home to some interested potential buyers and has long conversations with them about the conditions under which they may purchase her parent's home. Judy's parents do not pay her in cash but instead offer to send on an upcoming vacation. Is Judy in violation of NC Licensing Law?
No because the home is her parent's own property and it is therefore exempt from the licensure requirement.
No, because Judy did not receive any cash payment for her activity.
Yes, Judy is engaged in the business of real estate without a license
Yes because Judy is legally required to obtain a power of attorney from her parents in this instance.
Henri is the manager and owner of his own LLC. He has a full time salaried staff person, Sheila, that he employs to work for his LLC. Henri's company is buying homes, renovating them and putting them back on the market. He has Sheila show the properties to prospective buyers. Who is in violation of NC Licensing Law?
Only Henri
Only Sheila
Both Henri and Sheila
Neither Henri or Sheila
All of the following are TRUE about the character issue of an applicant for a NC Real Estate License, EXCEPT:
an applicant must possess honesty, integrity and good moral character
a mandatory criminal background check is required
the Commission makes a character determination before an applicant is permitted to take the NC Licensing Examination
an applicant has 60 days to request a hearing if the Commission determines that they do not possess satisfactory character
The NCREC makes a character determination ___ an applicant is permitted to take the NC Licensing Examination
before
after
during
throughout
an applicant has __ days to request a hearing if the Commission determines that they do not possess satisfactory character
30
60
90
120
How long is an applicant's Examination Eligibility Period to take the NC Real Estate Examination once the Commission has approved their application
60 days
90 days
180 days
360 days
All of the following require the refiling of an applicant's application for a NC Real Estate license, EXCEPT:
If the applicant delays taking the examination until after the 180 expiration of their examination eligibility period
If the license was expired for a period of more than 6 months
If the license was surrendered or revoked for any period of time
If the license was inactive for more than 2 years
The examination eligibility notice allows taking of the examination for ___ days. An applicant who delays more than these amount of days will have to refile an application.
90
120
180
30
A license expired for more than ___ requires the refiling of an application.
3 months
six months
30 days
90 days
Any revocation or surrender requires:
paying the $500 NCREC fine
refiling of an application
retaking the 75 hour preliscencing course
affiliating with another BIC across state lines
A licensee may remain inactive:
for no more than 2 years
indefinitely
until the dues are paid
until all CE untis are completed
There is never a requirement to refile an application for a licensee to move from inactive to active status, regardless of the time period of inactivity.
True
False
An applicant will forfeit both their examination and license application fees and their license will be canceled for all of the following, EXCEPT:
Failure to take the examination within the 180 day period
Failure to appear for an examination appointment as scheduled
Attempting to reschedule an examination appointment
Appearing more than 15 minutes late for a scheduled examination appointment
A NC provisional broker's real estate license is initially issued on what type of status?
active
inactive
probationary
expired
So long as it is part of his or her duties, is it legal for an unlicensed assistant to solicit listings for the broker?
Yes, if it is part of a written job description
No, soliciting listings is the exclusive responsibility of the broker-in-charge
Yes, because he or she is being paid a salary not a commission
No, active participation in soliciting real estate business requires a real estate license
Active participation in soliciting real estate business requires a real estate license
True
False
Active participation in soliciting real estate business does not require a real estate license
True
False
An unlicensed assistant may schedule appointments, but they cannot solicit or cold call for business.
True
False
When a corporation is involved in the sale or leasing of property that is owned by the corporation, who is exempt from the requirement to possess a real estate license?
Only the officers of the corporation
Only the directors of the corporation
Only the officers and directors of the corporation
The corporation's officers, directors and all W2 salaried employees are exempt from licensure
All of the following are following are considered exempt from licensure and considered to be dealing with their own property, EXCEPT?
the general partners of a partnership
the managers of an LLC
the officers, directors and W2 salaried employees of a corporation
a sole proprietor and their W2 salaried employees
A provisional real estate broker must remove the provisional status of their license by taking 90 hours of post licensing courses. The 90 hour courses are divided into three 30 hour courses. A provisional broker must take at least one of these thirty hour courses by which date?
the annual renewal date of their real estate license
the anniversary date of their real estate license
the end of the first calendar year their license was obtained
the second renewal of their real estate license
A provisional broker obtains their NC real estate license on April 15th and joins a real estate firm. In order to remain active, the broker must pay the renewal fee to the NC Real Estate Commission on or before:
June 30 of the current year
June 30 of the following year
June 10 of the current year
December 31 of the current year
All of the following are powers of the NC Real Estate Commission, EXCEPT:
to conduct announced or unannounced audits of licensees
to subpoena the books, records and bank statements and accounts of a licensee
to seek injunctive orders in court
to order licensees to make restitution to clients and levy fines
In North Carolina under the Residential Property Disclosure Act, sellers of 1-4 unit residential properties must complete a MOG (Mineral, Oil & Gas Disclosure). The purposes of this law include all of the following, EXCEPT:
to require sellers to disclose to buyers if mineral, oil and gas rights have been severed from the property.
to require sellers to disclose to buyers if mineral, oil and gas rights have been leased separately.
to prevent sellers from severing mineral, oil and gas rights from a property
to inform buyers if the seller does not intend to transfer mineral, oil and gas rights.
All of the following are true under the NC Condominium Act, EXCEPT:
the units are usually separately taxed and assessed
there must be a unit owner's association prior to the transfer of the first unit
a unit owner is prohibited from ownership of land and must take only title to their individual unit.
if the buyer cancels within the 7 day rescission period all money must be returned promptly with no penalty
In a NC condominium project, only certain owners have reserved parking spaces and garages. Under the NC Condominium Act, these areas would be known as:
Shared special assessments
Limited condo areas
Areas owned by the condominium owners association
Exclusive rights areas
All of the following are true of a project broker within a NC Time Share, EXCEPT:
the project broker is designated by the developer or owner of the time share
the project broker must be an actively licensed broker
a provisional broker may serve as a project broker
the project broker is responsible for supervision and management of the time share project and all licensees that are associated with the project
All of the following are TRUE if a time share is not properly registered in NC and a public offering statement is not provided to a buyer prior to contract under the NC Time Share Act, EXCEPT:
it is a felony to not register the units
the purchaser may be entitled to a penalty of 10% of their purchase price or $3,000 whichever is greater
the purchaser has a five day rescission period to cancel their purchase without penalty
the buyer and the developer may agree to waive both the 5 day cancellation period and the providing of a public offering statement.
How long does a provisional broker have to activate their license from the date of licensure?
there is no required time period for license activation
5 days
7 days
10 days
Can a real estate licensee renew an inactive license?
Yes, but they must pay a penalty for being inactive
Yes, because that will prevent the license from being expired
No, a licensee cannot renew an inactive license because inactive means they have not completed the required education
No, a licensee cannot renew an inactive license without refiling a license application
Under the NC Mechanic's Lien statute an owner of property must designate a mechanic's lien agent (MLA) under which of the following situations?
an owner who is making improvements to public buildings
the improvements are less than $30,0000
the improvements are to a primary residence
a new roof is being placed on a vacation rental unit that costs $42,000
A mechanic's lien agent is designate by the owner of the property to receive notice of the lien when improvements:
are not to a primary residence and exceed $30,000
are to a primary residence and are less than $30,000
are to a secondary residence and are less than $30,000
are to a secondary residence and are equal to $30,000
A mechanic's lien agent is designate by the owner of the property to receive notice of the lien when improvements:
are to a secondary residence and exceed $30,000
are to a primary residence and are less than $30,000
are to a secondary residence and are less than $30,000
are to a primary residence and exceed $30,000
The NC Homestead Exemption would be of importance and have the greatest impact on:
a borrower who is in default on their property and facing foreclosure
an individual who filed bankruptcy due to excessive medical bills and judgment liens
an investor who must engage in the short sale of an investment property
a married couple who is selling their primary residence to a buyer
Jack is a licensed real estate professional in Illinois. He has been a broker for many years, but is not licensed in NC. Jack has a friend who wants to purchase a home in Charlotte, NC. In regard to the representation of this buyer all of the following are TRUE, EXCEPT:
Jack may refer the buyer to a licensed NC broker and receive a referral fee even though he is not licensed in NC.
Jack may meet with the buyer in Illinois and explain the purchase process and answer questions about the NC transaction.
So long as Jack affiliates with a NC broker he may accompany the buyer to North Carolina and assist in showing the buyer property
The NC real estate commission does not have jurisdiction over Jack unless Jack conducts illegal brokerage activities in NC
Sherry is a provisional broker who works for a residential sales BIC and firm in North Carolina. Sherry has a couple of clients who want her to manage their rental properties. What are Sherry's options?
Sherry can manage the properties on her own outside of her existing firm
With the permission of her BIC Sherry can also affiliate with another firm that engages in property management.
Sherry can manage the rental properties only if she obtains a power of attorney from the owners.
Sherry can refer the clients to a property management firm and earn a referral fee that is paid to her through her BIC
A provisional broker is:
not permitted to affiliate with more than one BIC.
permitted to affiliate with more than one BIC.
not permitted to affiliate with any BIC.
permitted to affiliate his or her own self as a BIC.
In order to activate the license a provisional broker must:
affiliate with a BIC and the proper license activation form must be filed with NCREC.
affiliate with a BIC and pay the proper license activation fees which can range from $300 to $500 per application.
keep his or her license current and affiliate with a BIC after paying the correct fees.
affiliate with a BIC and the proper license activation form must be filed with his or her BIC.
post licensing consists of ___ hour courses which may be taken in any order
30
60
90
180
