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WorksheetsNC Real Estate Exam - Casual Pace
Total questions: 100
Worksheet time: 8hrs 20mins
Any provisional broker who fails to complete the postlicensing education requirement within the prescribed period of time
will have his or her license cancelled.
will have his or her license converted to inactive status.
must apply for a time extension to complete the requirement.
will be permanently barred from broker licensure in North Carolina.
Harold, a broker, filed his request for license activation from inactive status exactly two weeks ago. To date he has not heard from the NCREC regarding his filing. What is the status of Harold's license?
It is inactive until he receives acknowledgment.
It remains inactive for a 45-day period following the filing, regardless of acknowledgment.
It remains active during a 45-day probationary period, after which the license becomes inactive if the NCREC does not acknowledge the filing.
It is active immediately upon filing unless the NCREC fails to acknowledge within 30 days from the date on the activation form.
Provisional brokers are required to
complete a 30-hour postlicensing education requirement within 3 years of the first license renewal.
complete 2 annual postlicense classes of 45 hours apiece within 2 years of the first license renewal.
complete a 90-hour postlicensing education requirement within 3 years of initial licensure.
complete a 90-hour postlicensing requirement and a 24-hour broker transition course.
The North Carolina Real Estate Commission consists of
seven members nominated by the Governor and appointed by the General Assembly.
nine members, all appointed by the Governor.
nine members, seven appointed by the Governor and two appointed by the General Assembly.
seven members appointed by the Governor.
Broker-in-charge Allison failed to complete her continuing education requirement for the current license period. What are the consequences for this?
Her license is cancelled.
She will be on inactive status and lose her BIC status at the end of the license period.
Which of the following is the most accurate definition of real estate broker?
A person who buys and sells real estate for others, regardless of compensation.
A person who buys, sells and manages real estate for a broker-in-charge for compensation.
A person who buys or sells real estate on behalf of others for compensation.
A person who buys or sells real estate investment trust stocks.
James is unhappy as a broker-in-charge with Johnson Realty. James decides to quit and go to work immediately for a competitor, Benson Realty. What must James do to qualify as a broker-in-charge for Benson?
He must re-satisfy all the educational requirements, since his BIC status with Johnson was terminated.
He must notify the Commission of the change.
He must now demonstrate 2 year's prior full-time experience to qualify.
He must re-take the 12-hour BIC course.
To initially activate or reactivate a provisional broker's license, the provisional broker and the broker-in-charge must certify that the provisional broker
Has completed the prelicensing requirement.
Has completed the continuing education requirement and has sold at least five properties in the last two years.
Has completed the CE requirement and any postlicensing if required.
Has not previously been a broker-in-charge.
To qualify to be a broker-in-charge, a licensee must
Have a broker’s license, two years' full-time experience or its equivalent within the 5 prior years and satisfy an educational requirement.
Satisfy an experience requirement and complete the 90-hour postlicensing education requirement.
Have five years of full-time experience or its equivalent.
Complete the 24-hour broker transition course within 120 days after obtaining the designation.
A property manager leases and sells his own apartment buildings. An attorney handles a purchase for a client. A professional negotiator assists clients in obtaining the best price for their properties. A guardian acts under court order.
A property manager leases and sells his own apartment buildings.
An attorney handles a purchase for a client.
A professional negotiator assists clients in obtaining the best price for their properties.
A guardian acts under court order.
If a general partnership applies for a real estate license, all participants in the partnership may practice real estate. The qualifying broker must be a general partner of the partnership. The limited partners may not practice real estate under any circumstances. All general partners must be licensed as active brokers.
all participants in the partnership may practice real estate.
The qualifying broker must be a general partner of the partnership.
The limited partners may not practice real estate under any circumstances.
all general partners must be licensed as active brokers.
Christine has an active broker license on February 14th, 2020. Christine just earned her broker’s license. When would her license lapse assuming she does not complete her continuing education requirement?
June 30, 2020.
February 14, 2021.
June 30, 2021.
February 14, 2022.
Licensees may be disciplined or lose even their licenses if they are guilty of misrepresentation, provided that a party incurs sufficient financial damage. A material fact was either misstated or omitted. A material fact was misstated and not omitted altogether. It is proven that the misstatement was in fact made.
a party incurs sufficient financial damage.
A material fact was either misstated or omitted.
a material fact was misstated and not omitted altogether.
it is proven that the misstatement was in fact made.
The partnership of Blake & Anderson decides to incorporate. Bill Blake, the partnership's qualifying broker becomes the CEO of the new firm. In this case, what happens to the partnership's real estate license with respect to the new corporation?
The active license transfers to the corporation, provided the qualifying broker remains the same person.
The partnership license becomes inactive.
The partnership license is terminated and the corporation must apply for a new license.
The license transfers to the corporation as an inactive license.
What is required for a real estate firm to be licensed?
at least three individuals who are exempt from licensure.
at least four individuals who are not involved in real estate.
at least three licensed brokers and at least two individuals who are not involved in real estate.
Dorothy has an exclusive listing to sell lots in a new subdivision. A prospective buyer has only one reservation about placing an offer: if she drills a well, will it yield water? Dorothy knows that three of the eight lots already sold have failed to show water on the first drilling. However, she fails to disclose this. Is Dorothy guilty of anything here?
No, since the buyer is not her client.
No, since there is never a guarantee that a well will find water.
Yes, she is guilty of negligent omission.
Yes, she is guilty of willful omission.
Wally had his license revoked six months ago. He would like to continue to practice real estate. What must Wally do?
Wait until the statutory 12-month period has expired, then re-apply.
Follow the procedure for a licensee whose license has been expired for more than 6 months.
Appeal the revocation in civil court.
Wally cannot restore his license to active status.
Any licensee who violates the provisions of the real estate license law
is subject to license suspension, revocation, censure or reprimand by the Real Estate Commission.
will automatically have his or her license suspended.
must face an investigation followed by due process in superior court.
is in most cases guilty of a felony.
To satisfy the continuing education requirement, a non-resident licensee
must take eight credit hours of NCREC-approved real estate continuing education courses
need only take the 4-hour general update course or its equivalent in the state where the licensee is practicing.
may take the 4-hour general update course and an elective, or complete two approved 4-hour electives.
need only comply with the requirements where the licensee resides.
What happens to a broker's license if it is not renewed?
It terminates.
It must be surrendered.
It reverts to inactive status.
It remains active for a period not to exceed 45 days during which time a new broker can be installed.
Kelly must renew her provisional broker's license; however, she has not completed her continuing education requirement. What happens to Kelly's license?
It is assigned an inactive status.
It must be surrendered until the requirement is satisfied.
It remains active during a 45-day probationary period, after which the license becomes inactive.
It is suspended on a dormant status.
Licensees with inactive licenses may
not engage in any real estate activity requiring a license.
engage in activities limited to referrals.
engage in any real estate activity for others, provided no compensation is involved.
act as brokers-in-charge.
In North Carolina, broker's and provisional broker's licenses expire
on June 30th following issuance of the license.
every two years from the date of initial issuance.
on every anniversary of the issuance date.
on December 31st of every other year.
North Carolina real estate commissioners serve terms of
one year.
two years.
three years.
four years.
The education requirement for a new broker-in-charge is that the BIC must
complete a 12-hour broker-in-charge course within three years prior to or within 120 days following designation as a broker-in-charge.
complete a 12-hour broker-in-charge course and the 24-hour broker transition course within 90 days following designation as a broker-in-charge.
complete the 90-hour postlicensing course and 8 hours of BIC-specific continuing education.
In North Carolina, you are exempt from real estate licensure if you
negotiate leases.
auction real estate.
purchase multiple properties from a broker.
sell real estate on behalf of a broker.
The Real Estate Commission has historically viewed a material fact that must be disclosed as one which if it
relates to features of the property; facts about the property; or facts relating to the ability of the principal to complete the transaction.
either affects the property's value or the value of the immediate neighborhood.
can be demonstrably proven to be true.
leads or fails to lead to a completed transaction.
A newly licensed provisional broker may engage in real estate practice
immediately.
30 days following the initial issuance of the license.
upon conversion of the inactive license to active status.
as soon as the broker-in-charge has mailed or faxed a completed supervision notification form.
Darren, who is an active salesperson who lives in a neighboring state, would like to obtain a North Carolina real estate provisional broker's license. According to license law, Darren
must first move to North Carolina and become a resident.
must pass the North Carolina portion of the real estate licensing exam.
must complete the North Carolina prelicense course and pass both the national and North Carolina portions of the licensing exam.
automatically qualifies for licensure provided his state has a reciprocal arrangement.
In addition to suspending and revoking licensees, the NCREC is also empowered to
obtain injunctions against non-licensees who may be violating license law.
pursue criminal charges against individuals for fraud.
sue licensees for license law infractions which are felonies.
regulate unfair compensation structures within brokerage companies.
To satisfy North Carolina's continuing education requirement, brokers must
complete 8 hours of approved instruction every two years following initial licensure.
complete 8 hours of core courses every year following initial licensure.
complete 4 hours of approved instruction in the initial year of licensure, and 8 hours before each subsequent renewal.
complete 8 hours of approved instruction every year following the first renewal.
Which of the following must be done in order to remove the provisional status of the broker's license?
Complete the prelicense requirement for brokers.
Complete the 90-hour postlicensing requirement within the prescribed period of time.
Complete the 90-hour postlicensing requirement and prove 2 years' full-time experience.
all of the above.
To satisfy the continuing education requirement, a broker-in-charge must
take the 4-hour general update course and another 4-hour elective.
take the BIC 8-hour continuing education course.
take a specially-designated 4-hour continuing education course for BIC's, along with a 4-hour elective CE course within each license period.
complete the 4-hour BIC continuing education course in addition to the 8-hour CE course requirement.
Ken tells a buyer that a lot has sufficient area for a large house, an outbuilding, and swimming pool area. The buyer purchases the property and later discovers that she cannot build everything she wanted on the property due to easements, restrictions, and setback requirements. Here, Ken would be guilty of
negligent misrepresentation.
negligent omission.
intentional misrepresentation.
intentional omission.
What must a licensee do to convert an inactive license to active status?
submit a renewal application and complete the required continuing education.
convert the inactive license to active status.
re-take the license examination, re-apply, and complete the continuing education requirement.
In North Carolina, licensees may be disciplined by the Real Estate Commission for failing to deliver copies of the closing statements to buyers and sellers
upon the consummation of the transaction or within 3 days of closing.
within seven days following the closing.
within ten days following the closing.
upon their written request.
The North Carolina Real Estate Commission is empowered to regulate which of the following?
The requirements for obtaining a license.
Compensation of brokers.
Financial arrangements made between brokers and provisional brokers.
All of the above.
Terrell Adams has successfully completed all the licensing requirements for his broker's license. Upon initial licensure, the broker will be assigned
an active license.
an inactive license.
an inactive license pending receipt of the broker-in-charge designation.
a temporary license.
Which of the following represents a violation of North Carolina license laws?
failure to deliver a copy of a purchase agreement to a seller within 5 days
Using a fictitious name, albeit registered, in an advertisement.
Failure to disclose a property characteristic that is not material.
Paying a referral fee to a licensee who is unaffiliated with the firm.
Thomas, a provisional broker, had his active license suspended last month for a 6-month period. How can Thomas restore his license from suspended to active status?
He need not restore the license to continue practicing real estate.
He must wait 5 months, at which time it automatically restores to active status.
He must wait 5 months, then demonstrate he is supervised by a broker-in-charge and has completed the continuing education requirement.
He must wait 5 months, then apply to convert his license from inactive to active status.
He must wait 5 months, then demonstrate he is supervised by a broker-in-charge and has completed the continuing education requirement.
A provisional broker completes her 1st 30-hour postlicensing requirement, but 18 months after obtaining her license she has not yet completed her second 30 hour course. What happens to her license?
It becomes inactive.
It is cancelled.
It is revoked.
Nothing.
A licensee informs a buyer that a residence has 4,000 square feet of living area, as indicated by an expired listing. Since the former listing agent was very reputable, the provisional broker is confident that the representation is accurate and fair. In this case, the licensee
may be guilty of willful omission.
may be guilty of willful misrepresentation.
may be guilty of negligent omission.
has not made any misrepresentation or omission because the source of the measurement is reliable.
Which of the following is a requirement for a valid real estate contract?
It must be in writing and signed by all parties.
It must be notarized by a licensed attorney.
It must be approved by the local real estate board.
It must be witnessed by at least two people.
If a buyer and seller agree to change the closing date in a signed real estate contract, what must they do to make this change enforceable?
Send an email to each other confirming the new date.
Make a verbal agreement witnessed by their agents.
Amend the contract in writing and have all parties sign the amendment.
Notify the real estate commission.
Which of the following would most likely cause a real estate contract to be voidable?
The purchase price is below market value.
The contract was signed on a weekend.
One party was under duress when signing the contract.
The property is located in a flood zone.
The purpose of the closing event is to
confirm that the buyer has fulfilled all contract
requirements prior to title transfer immediately after
closing.
ensure that the seller has marketable title before monies
are transferred.
conclude the process for loan approval.
exchange legal title for the sale price.
A sale contract stipulates that a buyer is to pay the seller's title
insurance expenses. This practice is not customary in the area.
In this case,
the buyer and seller must amend the contract before
closing.
the contract is voidable, since the seller must pay the
expense.
the buyer may pay or not pay the expense, at his or her option.
the buyer must pay the expense.
Which of the following is a distinctive feature of metes and bounds descriptions?
They uses meridians and base lines.
They identify an enclosed area, beginning and ending a the same point.
They use lot and block numbers as the street adress.
They incorporate elevation into the descriptions.
The area running north and south between meridians is a
range.
township.
strip.
tier.
The area running east and west between base lines is a
range.
tier.
parameter.
parallel.
A section contains how many acres?
640
320
160
40
How many acres are there in the S 1/2 of the NE 1/4 of Section 3?
20 acres
40 acres
80 acres
160 acres
If a parcel does not have a lot and block number and is too irregular to be described as a fraction of a section, the legal description
is the street address
will include a metes and bounds description
will use an estimate of the sectional fraction
will create a special reference number
A datum is a reference point used for legal descriptions of
agricultural and ranch properties
properties that straddle state boundaries.
properties located above or below the earth's surface.
irregularly-shaped properties.
A 2,100 sq. ft. house is sold for $400,000. Rounded to the nearest cent, what is the cost per square foot?
$152.98
$190.48
$220.17
$542.21
What is block and lot?
a formal declaration that the person signing a document is doing so by choice
the process and physical product of finding and measuring the boundaries of a piece of real estate
the acquisition and right to anything produced by a property owner's land
a type of legal description that identifies a piece of platted property by referring to the block and lot numbers in the subdivision
In order for a provisional broker to advertise, the provisional broker must
identify herself in the ad and correctly state the name of the owner.
Have their broker's and the principal's consent and identify the name of the broker or firm in the ad.
have the broker review and approve the ad copy.
obtain the principal's consent to advertise without mentioning the broker's or firm's name in the ad.
A buyer representative recommends a mortgage lender to his client following the execution of a sale contract. The lender pays the licensee a referral fee, unbeknownst to the buyer. In this case, the licensee
has not violated state regulation, since the referral is from a licensed mortgage lender.
has violated state regulations by obtaining a secret profit from the buyer.
must inform the buyer of the commission within three days of receipt from the lender.
is required to share the commission with the buyer.
A residential provisional broker receives a $5,000 deposit from a prospective buyer in connection with an offer. In this case, the provisional broker
must give the deposit to their broker immediately.
must deposit the funds immediately.
must deliver the funds to the Commission immediately upon acceptance of the offer.
must deposit the funds within three banking days of the date of the offer.
What is a lien-theory state?
A state in which a mortgagee holds legal title to a secured property.
A state in which a mortgagee has equitable title to a secured property.
A state that allows a real estate owner's creditors to record liens against the owner's property.
A state in which a lien is considered as a conveyance.
What is the function of a note in a mortgage or trust deed financing arrangement?
It is the lender's security instrument in the collateral property.
It is evidence of ownership of the mortgage or trust deed.
It contains the borrower's promise to maintain the value of the property given as collateral for a loan.
It is evidence of the borrower's debt to the lender.
When homebuyer Henry pledges his newly purchased home as collateral for a mortgage loan, the evidence of the pledge is the
trust deed or mortgage.
promissory note.
loan commitment.
loan receipt.
Maria borrows $600,000 and pays two points for the loan. How much does she pay in points?
1200
12000
7200
It depends on the interest rate.
A conventional mortgage loan is one that is
backed by the Federal National Mortgage Association.
insured under Section 203(b) of the Federal Housing Administration loan program.
guaranteed by the Government National Mortgage Association.
not FHA-insured or VA-guaranteed.
A VA certificate of eligibility determines
how long an individual served in the military.
the maximum loan amount an approved lender can give to veterans.
how much of a loan the VA will guarantee.
whether a lender is approved to issue VA-guaranteed loans.
The difference between a balloon loan and an amortized loan is
A. an amortized loan is paid off over the loan period.
B. a balloon loan always has a shorter loan term.
C. an amortized loan requires interest-payments.
D. a balloon loan must be retired in five years.
Which of the following is an appraisal report?
an appraisal report.
a criminal record report.
a subordination agreement.
a default recourse waiver.
The Equal Credit Opportunity Act (ECOA) requires lenders to
extend equal credit to all prospective borrowers.
consider the income of a spouse in evaluating a family's creditworthiness.
discount the income of a person involved in child-rearing or child-bearing.
specialize lending activity by geographical area for improved customer service.
The debt ratio formula used to qualify borrowers is
total debt divided by debt payments.
gross income divided by assets.
gross income divided by debts.
debt payments divided by gross income.
What is the role of the Federal Housing Authority in the mortgage lending market?
It guarantees loans made by approved lenders.
It insures loans made by approved lenders.
It purchases loans made by approved lenders.
It originates loans made by approved lenders.
In a graduated payment mortgage loan,
Loan funds are disbursed to the borrower on a graduated basis.
The interest rate periodically increases in graduated phases.
The loan payments gradually increase.
The loan payments gradually increase and the loan term gradually decreases.
Who is the primary customer for the Federal Agricultural Mortgage Corporation, or FAMC?
Military veterans from farming families
Primary medical market lenders
Economically liquid farmers
Agribusinesses
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
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
If a provisional broker fails to complete all three postlicensing courses within 18 months of obtaining license, what is their license status once the anniversary date passes?
active
expired
cancelled
inactive
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
regulates the commissions exchanged between brokers, but not those exchanged with clients
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
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 will likely be issued a cease and desist order
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
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.
Under the provisions of the North Carolina Condominium Act, re-sellers of condominium units must
give buyer prospects a copy of the public offering statement.
give buyer prospects a statement of monthly fees and assessments.
give buyer prospects a copy of the public offering statement as well as monthly fees and expenses.
give other unit owners a right of first refusal.
According to the North Carolina Condominium Act, the initial purchaser of a condominium
may not be related to the condominium developer.
may not be a prior resident of the property.
must receive a public offering statement prior to executing a contract.
none of the above.
Which of the following is not used in North Carolina to legally describe a parcel of real property?
Metes and bounds descriptions.
References to a recorded map.
Government Survey System.
Legal descriptions contained in public records.
In North Carolina, the prescriptive period for adverse possession of private property without color of title is
fifteen years.
seventeen years.
twenty years.
thirty years.
In North Carolina, a lease of mineral rights
must be in writing and recorded to be valid.
is void if its term exceeds three years.
is enforceable if its term is less than three years.
is enforceable provided the tenant exercises the mining option.
If a North Carolina tenant refuses to pay rent for an apartment and continues to occupy the premises, the landlord
has grounds to evict the tenant.
landlord may not evict the tenant.
must wait 60 days to pursue a remedy.
none of the above.
In North Carolina, land contracts and installment sales
must be in writing to be valid.
are enforceable.
are enforceable if the payment term is less than three years.
are enforceable provided the purchaser can procure financing.
In North Carolina, if a salaried employee of a property manager performs administrative duties on behalf of the property owner, the employee
must be licensed as a broker.
must be licensed as a broker or provisional broker.
need not be licensed.
is violating North Carolina license laws.
Bob wants to work for his brother-in-law promoting and selling a time share project the brother-in-law is developing. What must Bob do to comply with state licensing regulations to sell time shares?
Pass the real estate time share exam.
Obtain a time share developer's license.
Obtain a real estate license and a securities license before engaging in any sales.
Obtain a certificate of occupancy for the time share project.
Who is responsible for keeping accurate records of trust monies, time share sales and rentals, and registration of a time share project?
The time share broker.
The time share developer.
The project broker.
The time share registrar.
Seller Brandy has an agency agreement with broker Tabitha that itemizes authorized activities in exchange for commensurate compensation. What type of agency agreement does Brandy have?
An open agency agreement
A full service agency agreement
A limited service agency agreement
A co-agency agreement
According to the North Carolina Machinery Act, how often do all counties have to reappraise property?
Every 4 years
Every 8 years
Every 12 years
Every 20 years
In the completion and fulfillment of the Offer to Purchase and Contract’s terms, which of the following statements is true?
Closing must occur within 30 days of the sales contract being signed.
If the seller defaults, the buyer may sue for specific performance.
At least 5% of the purchase price must be immediately escrowed.
The Offer to Purchase and Contract can be an oral agreement.
Which of the following conditions is not required in a North Carolina listing agreement?
It must not automatically renew.
It must have a stated expiration date.
It must be on pre-printed forms approved by NCREC.
It must contain a non-discrimination clause.
Provisional broker Sandra decides to leave her employing brokerage firm. What must she do to comply with state regulations?
Notify her broker-in-charge of her discontinuation within three business days.
Notify all principals that she is no longer practicing real estate.
Surrender all of her personal records to the broker-in-charge within three business days.
Notify the NCREC of the termination within 10 days following her last day.
The deadline for the broker to deliver a closing statement to a buyer and seller is
one day after closing.
three days after closing.
ten days after closing.
seven days after closing.
North Carolina regulations require that brokers must have trust accounts
if they are engaged in active brokerage practice.
regardless of whether their licenses are active or inactive.
that do not bear interest.
if they handle the funds of others.
Broker Mike is sole proprietor of his active real estate practice, which specializes in residential home sales. The broker-in-charge rule that applies here is that
Mike is exempt from the rule since he has no provisional brokers working for him.
Mike must designate himself as broker-in-charge in order to conduct business.
Mike must designate himself broker-in-charge as soon as he hires any provisional broker to work for him.
None of the above.
