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

Per Rule A.0116 - Handling of Trust Money Proper Account Designation The account must be in a federally insured depository institution. All that is, is a bank or savings association that insures the deposit by the FDIC.

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.

3 members of the North Carolina Real Estate Commission need to be licensed brokers, the rest of the members do not need to be licensed.

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.

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

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

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.

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 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.

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

A timeshare developer has 30 days within which to refund the money if a timeshare transaction is rescinded and the 30 days runs from the date of the purchase contract, not the date of cancellation or rescission.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

The North Carolina Homestead protects a certain amount of the property's equity from judgment creditors. The limit is $35,000, in some cases it is increased to $60,000.

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.

Active Real Estate Professionals must complete 8 hours of approved CE during each full licensure renewal period.

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.

North Carolina commission members serve three-year terms.

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.

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

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.

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.

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.

“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.

“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.

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.

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

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

“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.

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.

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)]

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

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).

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 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 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.

Technically, the commission never fines agents. They can fine a timeshare developer however, but that's not what the question asked. When it comes to agents, they can reprimand, censure, suspend or revoke a license. “The Commission has the authority to discipline licensed brokers for violation of the Real Estate License Law and Commission rules. The Commission does not have the authority to award monetary compensation.” Per general FAQ’s North Carolina Real Estate Commission.

North Carolina has full reciprocity with all other states but with some additional education requirements.

Yes. A broker must be on active status to be compensated - referral, commission, etc. A provisional broker must be affiliated with a broker in charge to remain on active status. To stay on active status, the broker must renew their license by the expiration deadline and complete the required continuing education.

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.

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