Free North Carolina Real Estate Practice Exam Questions (December 2024) 40+

A broker or salesperson residing in a state other than North Carolina who holds an active broker or salesperson license in the state where his or her primary place of real estate business is located may apply for and obtain a North Carolina is called a limited nonresident commercial broker license per General [G.S. 93A‑1 and 93A‑2].

All NC real estate licenses must be renewed by June 30 each year, regardless of the date of issuance.

The North Carolina Real Estate Commission has a total of 9 members. The Governor appoints seven members, and the other two are appointed by the General Assembly after the Speaker of the House of Representatives and the President Pro Tempore of the Senate recommend them. Per GS 93A-3 Page 1 § 93A-3.

North Carolina code requires brokers to keep full and complete records of all their real estate transactions and escrow accounts for a minimum of three years.

This North Carolina Commission is responsible for real estate licensees, education, and other resources regarding real estate in the state of North Carolina.

Title theory states function where banks or mortgage lenders hold the title of a property until it is paid in full. North Carolina is a title theory state.

First substantial contact never occurred and no further agency disclosure was required. First substantial contact occurs with sellers in a pre-listing meeting, with buyers in a meeting to where they define the parameters of a home search, and with owners marketing their own property.. Disclosure should be made during these occasions.

If both parties agree in writing a broker-in-charge can represent both the buyer and seller in the purchase and sale of a property.

The licensee must notify the commission if a broker chooses to change their legal name due to marriage. According to North Carolina License Law, a licensee must inform the commission of any name or address changes within ten days.

“The Commission does not represent any party to the complaint. Brokers who have a complaint filed against them are encouraged to retain their own attorneys should they so desire. The Commission’s attorneys represent the Commission in the cases where the Commission orders a hearing.” Per general FAQ’s North Carolina Real Estate Commission.

The listing broker would be responsible. The selling agent didn't know, and neither did the seller.

Technically, the seller pays the listing broker (their sponsoring broker or broker-in-charge) who then pays the listing agent or provisional broker.

“No. The Tenant Security Deposit Act, GS 42-50, which is a state law, requires the landlord or property manager to keep the money in a "trust account". The Act applies to "all persons and firms which rent residential properties (except single rooms) on a weekly, monthly, or annual basis". Per general FAQ’s North Carolina Real Estate Commission.

“No. Per GS 93A-1, no one may accept compensation for brokerage activities in North Carolina without a North Carolina real estate license on Active status.” Per general FAQ’s North Carolina Real Estate Commission.

North Carolina commission members serve three-year terms.

This North Carolina Commission is responsible for real estate licensees, education, and other resources regarding real estate in the state of North Carolina.

Tina may have her license suspended or revoked by the North Carolina Real Estate Commission. Drafting deeds is not a real estate broker's job.

Under agency law in North Carolina Dual Agency is legal but only with the consent of all parties to the transaction. Dual Agency is when the broker owes both the seller and buyer a duty to deal with them fairly and honestly. In this type of agency relationship, the broker represents each party.

A North Carolina resident does not need a license to draw up a binding lease for a new tenant in a property the resident owns. All of the other actions would require a North Carolina real estate license.

“Every broker shall notify the Commission in writing of each change of personal name, firm name, trade name, residence address, firm address, telephone number, and email address within 10 days of said change.” Per 21 NCAC 58A .0103.

The North Carolina Homestead Exemption applies only to a primary residence and its main purpose is to protect a certain amount of the property's equity from judgment creditors.

The Machinery Act requires that properties be assessed at least once every 8 years (octennial appraisal). Tax rates can be changed every year and are not set by the Machinery Act, but by the budget of the municipality.

The North Carolina Statute of frauds requires leases of three years or longer to be in writing to be enforceable.

An unlicensed employee may not show homes that are for sale. They can however do the other tasks per [G.S. 93A‑1 and 93A‑2].

Designated agency is a form of dual agency. It is a practice permitted in North Carolina where one firm represents both the buyer and seller.

The “entry-level” license status category. A person who has met all the license qualification requirements is initially issued a broker license on “provisional” status and is referred to as a “provisional broker.” Per License Categories [G.S. 93A-2]

In North Carolina, a deed must contain words of conveyance, name both grantor/grantee, contain a legal description, and be signed by the grantor to be valid.

North Carolina is NOT a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

“Any real estate broker who is convicted of a misdemeanor or felony criminal offense or who has had any disciplinary action taken against him or her in connection with any other professional license (real estate or other) must notify the North Carolina Real Estate Commission in writing within 60 days following the final judgment or final order in the case.” Per Commission Rule A .0113, eff. August 1, 1996, amended effective July 1, 2000.]

In North Carolina, the timeshare purchase rescission period is five calendar days, and the condominium purchase rescission period is seven days.

“Earnest money is given by the buyer to the seller to demonstrate the buyer’s good faith when making an offer to purchase the seller’s property. A due diligence fee is a separate negotiated amount of money paid by the buyer to the seller in exchange for the buyer’s right to terminate the contract for any reason (or no reason) during the "due diligence period", as agreed between the buyer and seller in the purchase contract.” Per general FAQ’s North Carolina Real Estate Commission.

Remember, North Carolina’s timeshare laws are controlled by the North Carolina Real Estate Commission. The North Carolina Real Estate Commission has nothing to do with the association of Realtors, or the regulation of pay.

None of these would require a real estate license, you can invest in real estate without a license, but it might definitely help to get one.

A timeshare developer has 30 days within which to refund the money if a timeshare transaction is rescinded and the 30 days runs from the date of the purchase contract, not the date of cancellation or rescission.

The Connor Act provides that certain real estate documents are not valid against third parties until recorded. These documents include deeds, mortgages, purchase contracts, installments, land contracts, assignments, options, and more.

“No. Brokers should consult their local Boards of REALTORS® (if the brokers are members) or their private attorneys.” Per general FAQ’s North Carolina Real Estate Commission.

No. Not real estate brokers. “The basic statutory provision relating to a licensee’s handling of the money or property of others states that a broker may not “commingle” his or her own money or property with the money or property of others.” Per [G.S. 93A-6(a)(12)]

A broker-in-charge is NOT a separate license, but only a separate license status category. All of the other statements are true. Per G.S. 93A-2(a1).

Brokers must then deposit these funds no later than 72 hours after the date the contract was executed. The only exception to this 72-hour requirement is weekends and national holidays, in which case the funds must be deposited on the next business day following the holiday or weekend. Per 21 NCAC 58A .0116: Handling of Trust Money.

The North Carolina Real Estate Commission is composed of nine members, the Governor appoints seven members. So Most members of the North Carolina Real Estate Commission are appointed by the Governor.