North Carolina Real Estate Law and Concepts: A Study Guide, Exams of Social Sciences

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POST LICENSE 303--NC LAW, RULES AND LEGAL

CONCEPTS

Absorption Study - Answers- How much space is used for the number of sales in a given period of time Terms associated with commercial office space - Answers- Floor plate, core area, usable area and rentable area Residential Rental Agreement Act responsibilities - Answers- 1 - Property must be habitable at the time of possession 2 - Habitability cannot be waived by the lease agreement 3 - tenant cannot withhold rent even if the property is not habitable 4 - At the beginning of the tenancy, landlord to replace the batteries in the smoke detector and carbon monoxide detector Broker-in-Charge duties - Answers- 1 - Retain all ads used to market listings 2 - Supervise PBs 3 - Make sure all brokers get required CE and annually renew license 4 - Keep trust account records Permitted assistant duties - Answers- 1 - Show rental units 2 - Fill in blanks on rental agreement 3 - Collect and deposit monies 4 - Keep books and records Forbidden assistant duties - Answers- 1 - Show listings 2 - Conduct open houses 3 - Write ads for listings 4 - Negotiate rent amounts or lease terms What happens if a Provisional Broker does not fulfill their required 90 hours of post licensing in 3 years - Answers- Status changes to inactive Qualifying Broker title for a business license - Answers- Corporation--Officer LLC--Manager Partnership--General/Full Partner Status of QB - Answers- - Does not have to be BIC. Business has to have both, but does not have to be same person

• No qualifying experience
• QB not responsible for PBs

Definition of a subdivision - Answers- One partial split into two or more lots for sale or development and the dedication of a new/existing road (does not have to be a public road) Collect commission after leaving a firm and going to another in the middle of a listing transaction? - Answers- yes Is a modular home on a permanent foundation treated as real property? - Answers- yes Is a manufactured home placed on a lot real property? - Answers- no Features of a commercial broker lien - Answers- 1 - can only be filed by listing firm 2 - Is not superior to a mechanics lien 3 - for commercial properties in the transaction 4 - only be filed after a contract is formed for the commercial transaction When may a provisional broker lawfully engage in brokerage activities? - Answers- When actively supervised by designated BIC BIC requirements - Answers- 1 - Non-Provisional Broker 2 - 2 years of experience (full-time brokerage) in the last 5 years. 3 - Complete 12-hour BIC course within 120 days after or 1 year before declaring BIC status Features of a Limited Non-Resident Commercial RE Broker License - Answers- 1 - Individual brokers only 2 - Active license in their state 3 - No amount of real estate experience is required 4 - Must have a cooperation & affiliation agreement with a NC Broker Requirements of a firm license - Answers- 1 - Renewed every year 2 - Renewed between May 15 and June 30 3 - Must have QB 4 - Must have authority from NC Secretary of State to engage in business in NC When must agents be listed as "dual Affiliation" on agency agreements - Answers- When they are associated with two entities in a transaction and both entities must be listed as agents on all agency agreements. In what situation may a firm not compensate an agent on their listing that closes - Answers- License has expired and keep providing real estate services as an agent. For a property manager to be compensated for using a service of a company, they need what? - Answers- written permission from property owners

Can an out-of-area broker be compensated? - Answers- Yes. Must verify they have an active NC Brokers license. Can a full broker be affiliated with two different real estate firms at the same time? - Answers- Yes. Need permission of the BIC of both firms. What does a "letter of inquiry" from the Real Estate Commission mean? - Answers- Received a written complaint about you. What is a commercial percentage lease - Answers- Fixed base rent plus percentage of tenants gross/net income Activities that require a NC broker license - Answers- 1 - lease or sell properties for others for compensation 2 - receive compensation for referrals Exemptions from NC Real Estate License - Answers- 1 - Person who acts under POA 2 - Property owner 3 - Attorney in the practice of law 4 - Person acting under a court order (trustee) What is a major difference between a Townhome and a Condominium? - Answers- Townhome includes land beneath unit. Condo does not. Does a person selling time shares in North Carolina need a license? - Answers- Yes In a vacation rental property, how much notice is necessary before starting eviction process? - Answers- 4 hours Can a NC married couple take title to property other an Tenants by the Entirety? - Answers- Yes. Must request. Is a buyer's agent required to disclose to the seller (seller's agent) that their buyer cannot get financing? - Answers- Yes. Material fact. Can the mandatory Property Disclosure Form or the Mineral Oil and Gas forms be altered by a real estate agent? - Answers- No. Who is required by law to disclose if streets in a subdivision will be declared "private" or "public" prior to selling or conveying a lot? - Answers- Subdivision developer Who will be liable for the clean up of oil polluted property? - Answers- Owner even if they had not responsibility for leakage. Are rental rooms in a single sex dorm exempt from the NC Fair Housing Act? - Answers- Yes

Does a leasing agent need a NC real estate license if a property is owned by a corporation? - Answers- No. Must be a W-2 employee of owner Can a full broker act independently as a sole proprietor without being a designated BIC?

• Answers- Yes. Cannot solicit or advertise RE services. Does the 12 hour BIC course count toward the required 4 hour elective - Answers- yes Who is to notify the commission of the registration of any assumed business name adopted by the firm? - Answers- QB Payment of the annual license renewal fee by June 30th each year ensures the real estate license will be - Answers- current (not expired) When must a broker inform their client that they are getting a bonus in a real estate transaction? - Answers- Before write the offer for their client What is the Public Offering Statement? - Answers- Document a developer must give a buyer before they sign a contract to purchase a new timeshare. When is accounting required for the security deposit after a tenancy has expired? - Answers- Preliminary accounting within 30 days of the end of the tenancy of how the security deposit was used if any. When a broker lists a NC Vacation Rental Property, do they have to disclose the existence of executed rental agreements for the next year? - Answers- Yes. Material fact. After a divorce what happens to the tenancy by the entirety ownership? - Answers- Any property still co-owned will convert to tenancy in common. Does a broker have any responsibility for having knowledge of a zoning ordinance or restrictive covenants affecting a lot? - Answers- Yes. Who enforces the State Fair Housing Act in North Carolina? - Answers- NC Human Relations Commission Useable Area - Answers- floor plate - core floor plate - Answers- area measured around the exterior walls Core - Answers- area of building that includes building functions including lobbies, elevators, stairs, restrooms, HVAC Core Factor - Answers- Percentage of the overall building footage that the core covers