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North Carolina Real Estate Licensing and Regulations, Exams of Real Estate Management

Various aspects of real estate licensing and regulations in north carolina. It addresses topics such as the requirements for obtaining a real estate license, the responsibilities and obligations of licensed real estate professionals, the role of the north carolina real estate commission, and the rules and regulations governing real estate transactions and commissions. Detailed information on topics like the transfer of property ownership, the different types of real estate liens, the condominium act, and the responsibilities of landlords and tenants. It also covers appraisal methods, depreciation, and the rights of tenants in foreclosed properties. Overall, this document serves as a comprehensive guide to the legal and regulatory framework governing the real estate industry in north carolina.

Typology: Exams

2024/2025

Available from 09/21/2024

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All of the following are physical characteristics of land except: A. Indestructibility B. Uniqueness C. Immobility D. Scarcity - ANSWERS✔✔ D. Scarcity Under the doctrine of specific performance, the party harmed by breach of a real estate contract can ask a judge to force the breaching party to carry out the terms of the contract rather than order the breaching party to pay monetary damages. Which physical characteristic of land is the basis for the doctrine of specific performance? A. Indestructibility B. Uniqueness C. Immobility D. Permanence of Investment - ANSWERS✔✔ B. Uniqueness Which of the following is considered to have the greatest impact on the value of a property? A. Area Preference B. Permanence of Investment C. Scarcity D. Uniqueness - ANSWERS✔✔ A. Area Preference

The concept by which land would increase automatically along a river or stream is known as: A. Accretion B. Littoral Rights C. Avulsion D. Reliction - ANSWERS✔✔ A. Accretion The owner of a house wants to fence the yard for a dog. When the fence is erected, the fencing materials are converted to real estate by: A. Severance B. Annexation C. Immobility D. Indestructibility - ANSWERS✔✔ B. Annexation A deed conveyed ownership to a grantee "so long as the existing building on the property is not destroyed." Following the transfer, the original grantor has what type of interest? A. Life Estate B. ongoing ownership in the property that lasts as long as the condition C. Fee Simple Estate D. Reversionary Estate - ANSWERS✔✔ D. Reversionary Estate A woman conveys a life estate to her son-in-law and stipulates that upon his death the estate will pass to her grandson. The grandson has an: A. Estate in Reversion B. Estate in Remainder

C. Estate Pur Autre Vie D. Estate for the life of another - ANSWERS✔✔ B. Estate in Remainder A person who acquired ownership that can be inherited, with the provision "that the land must always be used for recreational purposes," has: A. a fee simple absolute estate B. a defeasible fee C. a fee simple to a condition subsequent estate D. an estate that cannot be sold - ANSWERS✔✔ B. a defeasible fee A brother and sister bought a commercial building and took title as joint tenants with right of survivorship. The brother died. The sister now owns the building: A. as a joint tenant with right of survivorship with her brother's heirs B. in severalty C. as a tenant in common with her brother's heirs D. as a life tenant with her brother's heirs having remainder interests - ANSWERS✔✔ B. in severalty Co-owners of a fee simple interest in a small office building are neither related to nor a creditor to each other. One owner dies intestate. The surviving owner would become the sole owner of the property under which of the following rights? A. adverse possession B. reversionary interest C. survivorship D. foreclosure - ANSWERS✔✔ C. survivorship

Three joint tenants with rights of survivorship own a parcel of land. One owner sells his interest to a long-time friend. After the conveyance, the remaining original owners: A. become tenants in common with each other B. become tenants in common with each other and the newest owner C. become joint tenants with the newest owner D. remain joint tenants with each other - ANSWERS✔✔ D. remain joint tenants with each other The owner of a condominium unit learns that a neighbor has failed to pay his condominium association dues. If the neighbor does NOT pay the dues: A. a lien can be filed against the condominium complex B. a lien can be filed against the neighbor's unit C. a lien can only be filed against the common areas of the condominium D. the taxing authority can order the condominium be dissolved - ANSWERS✔✔ B. a lien can be filed against the neighbor's unit The severalty owner of a parcel of land sells it. The buyer insists that the owner's wife also sign the deed. The purpose of obtaining the wife's signature is to: A. terminate any rights the wife may have in the property B. defeat any curtsey rights C. provide evidence that the owner is married D. subordinate the wife's signature to the buyer - ANSWERS✔✔ A. terminate any rights the wife may have in the property

Vonda Lee and William purchased a home together in 2003 with the deed simply listing both of them as "grantees" without specifying how they were to hold title. They married each other in early 2004. How do they now likely hold title to the house purchased in 2003 if they have not made any other adjustments to their deed? A. tenancy by the entirety B. tenancy in severalty C. joint tenancy D. tenancy in common - ANSWERS✔✔ D. tenancy in common Which of the following statements is true? I. A life estate is a freehold estate. II. It is possible to have a freehold estate and a non-freehold estate on the same property at the same time. A. I only B. II only C. Both I and II D. Neither I nor II - ANSWERS✔✔ C. Both I and II Which of the following would be considered real property? I. Electrical switch plate covers II. Gas logs attached to a fireplace A. I only B. II only C. Both I and II D. Neither I nor II - ANSWERS✔✔ C. Both I and II Jason's property is adjacent to a navigable river in North Carolina and Jason wants to sell his property. Which of the following statements is true?

A. Jason can restrict the public from using that portion of the river that is next to his property B. An owner can sell the property and retain his rights to access the river once it is sold C. Jason's land ends at the center of the waterway D. If Jason obtains proper permits and builds a dock on the river, the dock will automatically become owned by the public - ANSWERS✔✔ B. An owner can sell the property and retain his rights to access the river once it is sold The owner of two acres of land sold one acre but retained an appurtenant easement over that land for ingress and egress to his retained lot. The retained lot: A. is the dominant tenement B. serves as the servient tenement C. can be cleared of the easement when it is sold to a third party D. is subject to an easement in gross - ANSWERS✔✔ A. is the dominant tenement Which of the following liens generally holds first priority? A. mortgage lien B. purchase money lien C. ad valorem real estate tax lien D. federal income tax lien - ANSWERS✔✔ C. ad valorem real estate tax lien Title to real estate passes when a valid deed is: A. signed and recorded B. signed, delivered and accepted

C. filed and microfilmed D. executed and mailed - ANSWERS✔✔ B. signed, delivered and accepted Which of the following is an essential element of a valid North Carolina deed? A. a seal B. recordation C. the signature of the grantee D. words of conveyance - ANSWERS✔✔ D. words of conveyance Regarding title recordation, which of the following statement(s) is/are true? l. Physically taking possession of the property is constructive notice. ll. Public notice of recording documents is actual notice. A. l only B. ll only C. Both l and ll D. Neither l nor ll - ANSWERS✔✔ D. Neither l nor ll The recording of a deed: A. is required in order to fully transfer the title of the real estate B. makes the deed enforceable C. ensures the grantee's interest in a parcel of real estate D. warrants the grantee's title to real property - ANSWERS✔✔ B. makes the deed enforceable

Determine the excise tax to be paid on a house that sells for $268,210 if the buyer makes a $25,000 down payment and the seller takes back a second mortgage for $50,000? A. $536. B. $ C. $ D. $538 - ANSWERS✔✔ B. $ Deed restrictions can be created by all of the following, EXCEPT: A. deeds B. statutes C. written agreements D. general plans of a subdivision - ANSWERS✔✔ B. statutes The enforcement of zoning requirements occurs by: A. local homeowners' associations B. local municipalities through the Enabling Act C. The NC Department of Transportation D. local homeowners' associations - ANSWERS✔✔ B. local municipalities through the Enabling Act A seller has indicated to the listing agent that the heating closet area is lined with asbestos. The seller tells the listing agent that the asbestos was tested and since it was not friable posed no environmental hazard. Which of the following would be an appropriate comment for the listing agent to make to prospective buyers?

A. There is no dangerous asbestos in this home. B. The asbestos was tested and poses no danger to anyone who occupies the home. C. The home has asbestos. D. I am not aware of any dangerous asbestos in the home. - ANSWERS✔✔ C. The home has asbestos. An unlicensed assistant may do all of the following activities, EXCEPT: A. assist the licensee with administrative duties and tasks B. exhibit units for rent and provide tenants with information about the lease agreement C. exhibit homes that are for sale and show the buyer around the home D. fill in preprinted lease agreements and collect monies from prospective tenants, as long as the employee does not negotiate rents - ANSWERS✔✔ C. exhibit homes that are for sale and show the buyer around the home All of the following statements are correct regarding the NCREC, EXCEPT: A. They shall be entitled to the services of the Attorney General of North Carolina. B. They shall not make rules or regulations regulating commissions, salaries, or fees to be charged by licensees. C. They shall make rules to allow a licensee to pay a travel agent who does not have a real estate license a referral fee. D. They shall have the power to make reasonable bylaws, rules and regulations that are inconsistent with the provisions of the general statutes.

  • ANSWERS✔✔ D. They shall have the power to make reasonable bylaws, rules and regulations that are inconsistent with the provisions of the general statutes.

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. 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 B. 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 C. 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 D. the neighbor brings fresh tomatoes from their garden and bakes their agent a fresh apple pie as a way of saying thank you - ANSWERS✔✔ D. the neighbor brings fresh tomatoes from their garden and bakes their agent a fresh apple pie as a way of saying thank you 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? A. 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. B. The agent may assist their friend so long as they activate their license before the transaction closes and they are paid. C. An agent who's license is inactive may not earn any fees or represent others in a real estate transaction. D. 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. - ANSWERS✔✔ C. An agent who's license is inactive may not earn any fees or represent others in a real estate transaction. Which of the following do not need a real estate license to sell property?

A. a corporation that owns property and is using an employee to sell the property B. an auction house that deals in the sale of real property C. an attorney who regularly and routinely assists others in the buying and selling of real property D. an unlicensed assistant sitting in an open house - ANSWERS✔✔ A. a corporation that owns property and is using an employee to sell the property Which of the following is INCORRECT about the post licensing requirement of a provisional broker? A. the due date of the post licensing education is the anniversary date of licensure B. 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 C. post licensing courses end on June 10th and must be completed for the provisional broker to renew their license on June 30th D. if a provisional broker does not complete post licensing by the deadlines their license will become inactive - ANSWERS✔✔ C. post licensing courses end on June 10th and must be completed for the provisional broker to renew their license on June 30th 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? A. 30 days B. 60 days C. 6 months D. one year - ANSWERS✔✔ C. 6 months A corporation selling its own properties through the actions of its own salaried W2 employees:

A. is not required to have a firm license, but may not use its own employees B. can use its own unlicensed employees, but must have a firm license C. needs neither a firm license nor do its employees need to be licensed D. need not have a license, but must affiliate with an NC broker-in-charge - ANSWERS✔✔ C. needs neither a firm license nor do its employees need to be licensed In regard to real estate fees and commissions between brokerages and clients what is the role of the North Carolina Real Estate Commission: A. only sets maximum limits on the fees and commissions B. has no role in fees or commissions C. only becomes involved when a complaint if filed D. regulates the commissions exchanged between brokers, but not those exchanged with clients - ANSWERS✔✔ B. has no role in fees or commissions All of the following are requirements of licensure for a NC Real Estate license, EXCEPT: A. Possess a social security number B. Be a United States citizen C. File a complete application and fee D. Be a resident of North Carolina - ANSWERS✔✔ D. 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? A. No because the home is her parent's own property and it is therefore exempt from the licensure requirement. B. No, because Judy did not receive any cash payment for her activity. C. Yes, Judy is engaged in the business of real estate without a license D. Yes because Judy is legally required to obtain a power of attorney from her parents in this instance. - ANSWERS✔✔ C. Yes, Judy is engaged in the business of real estate without a license All of the following require the refiling of an applicant's application for a NC Real Estate license, EXCEPT: A. If the applicant delays taking the examination until after the 180 expiration of their examination eligibility period B. If the license was expired for a period of more than 6 months C. If the license was surrendered or revoked for any period of time D. If the license was inactive for more than 2 years - ANSWERS✔✔ D. If the license was inactive for more than 2 years So long as it is part of his or her duties, is it legal for an unlicensed assistant to solicit listings for the broker? A. Yes, if it is part of a written job description B. No, soliciting listings is the exclusive responsibility of the broker-in- charge C. Yes, because he or she is being paid a salary not a commission D. No, active participation in soliciting real estate business requires a real estate license - ANSWERS✔✔ D. No, active participation in soliciting real estate business requires a real estate license

All of the following are following are considered exempt from licensure and considered to be dealing with their own property, EXCEPT? A. the general partners of a partnership B. the managers of an LLC C. the officers, directors and W2 salaried employees of a corporation D. a sole proprietor and their W2 salaried employees - ANSWERS✔✔ D. a sole proprietor and their W2 salaried employees 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: A. June 30 of the current year B. June 30 of the following year C. June 10 of the current year D. December 31 of the current year - ANSWERS✔✔ A. June 30 of the current year All of the following are true under the NC Condominium Act, EXCEPT: A. the units are usually separately taxed and assessed B. there must be a unit owner's association prior to the transfer of the first unit C. a unit owner is prohibited from ownership of land and must take only title to their individual unit. D. if the buyer cancels within the 7 day rescission period all money must be returned promptly with no penalty - ANSWERS✔✔ C. a unit owner is prohibited from ownership of land and must take only title to their individual unit.

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: A. Shared special assessments B. Limited condo areas C. Areas owned by the condominium owners association D. Exclusive rights areas - ANSWERS✔✔ B. Limited condo areas How long does a provisional broker have to activate their license from the date of licensure? A. 180 days B. there is no required time period for license activation C. 30 days D. 1 year from the date of licensure - ANSWERS✔✔ B. there is no required time period for license activation Can a real estate licensee renew an inactive license? A. Yes, but they must pay a penalty for being inactive B. Yes, because that will prevent the license from being expired C. No, a licensee cannot renew an inactive license because inactive means they have not completed the required education D. No, a licensee cannot renew an inactive license without refiling a license application - ANSWERS✔✔ B. Yes, because that will prevent the license from being expired 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?

A. an owner who is making improvements to public buildings B. the improvements are less than $30, C. the improvements are to a primary residence D. a new roof is being placed on a vacation rental unit that costs $42,000 - ANSWERS✔✔ D. a new roof is being placed on a vacation rental unit that costs $42, 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: A. Jack may refer the buyer to a licensed NC broker and receive a referral fee even though he is not licensed in NC. B. Jack may meet with the buyer in Illinois and explain the purchase process and answer questions about the NC transaction. C. So long as Jack affiliates with a NC broker he may accompany the buyer to North Carolina and assist in showing the buyer property D. The NC real estate commission does not have jurisdiction over Jack unless Jack conducts illegal brokerage activities in NC - ANSWERS✔✔ C. So long as Jack affiliates with a NC broker he may accompany the buyer to North Carolina and assist in showing the buyer property Which type of estate cannot pass by inheritance? A. fee simple estate B. fee simple condition subsequent estate C. conventional life estate D. pur autre vie life estate - ANSWERS✔✔ C. conventional life estate A rectangular-shaped parcel of land, which measures 400 feet by 600 feet, is divided into two equal lots by a creek that runs from the northeast corner to the southwest corner. What is the approximate acreage of each divided parcel?

A. 55 acres B. 2.75 acres C. 3.47 acres D. 5.51 acres - ANSWERS✔✔ B. 2.75 acres Assume annual real estate taxes amount to $1,800 and have been paid in advance for the calendar year by the seller. If closing is set for September 15, which of the following is correct? A. credit seller $525; debit buyer $1, B. credit seller $1,275; debit buyer $ C. credit buyer $525; debit seller $1, D. credit seller $525; debit buyer $525 - ANSWERS✔✔ D. credit seller $525; debit buyer $ Which of the following statements is/are true? I. A freehold estate and a nonfreehold estate will never exist at the same time on the same property. II. A life estate is a nonfreehold estate. A. I only B. II only C. Both I and II D. Neither I nor II - ANSWERS✔✔ D. Neither I nor II Aunt Fran decides to sell her property to a church with a fee simple interest, but Aunt Fran reserved or excepted a conventional life estate. Which of the following statements is true regarding this transfer? A. The church is the life tenant and Aunt Fran has a reversionary interest.

B. Aunt Fran is the life tenant and the church has a remainder interest. C. The church owns the property and Aunt Fran has established a non- freehold interest. D. This is best referred to as a life estate pur autre vie. - ANSWERS✔✔ B. Aunt Fran is the life tenant and the church has a remainder interest. The basic premise for controlling the use of land is to protect and promote the health, safety, welfare and morals of the general public. As imposed under the government's right to police power, zoning ordinances do NOT regulate: A. the use to which a property may be put B. the placement of buildings on the property C. the bulk and density of buildings D. minimum acceptable material and construction standards - ANSWERS✔✔ D. minimum acceptable material and construction standards Joe, Moe and Harry are joint tenants owning a parcel of land. Harry conveys his interest to his long-time friend, Will. After the conveyance, Joe and Moe: A. become tenants in common B. continue to be joint tenants with Harry C. become joint tenants with Will D. remain joint tenants with Will becoming a tenant in common - ANSWERS✔✔ D. remain joint tenants with Will becoming a tenant in common What is true about eminent domain? A. The Department of Transportation is exempted from compensating land owners for critical road widening projects.

B. In order to establish eminent domain the government must meet the elements of adverse possession. C. Should the government condemn a rental property, the lease is automatically terminated. D. Eminent domain is the process by which the government condemns land.

  • ANSWERS✔✔ C. Should the government condemn a rental property, the lease is automatically terminated. A city evicts tenants of an apartment complex by the power of eminent domain because of a planned highway expansion. Does the city have to pay compensation and does the city have to let the tenants finish their lease terms? A. The city would have to allow the tenants to complete their lease term and must pay them compensation. B. The city may never condemn an apartment building or other facility that is currently occupied. C. The city does not have to allow the tenants to complete their lease term, but the city will have to compensate the tenants. D. The city does not have to allow the tenants to finish their lease terms an because they are not the owner of the apartment building, the tenants have no right to compensation. - ANSWERS✔✔ C. The city does not have to allow the tenants to complete their lease term, but the city will have to compensate the tenants. A developer requires all builders within the subdivision to build a certain standard home and also requires that no home may be built smaller than 4,000 square feet. What type of restriction has the developer created and how may it be enforced? A. Building permits, enforced through the city or county in which the property is located. B. Private deed restrictions, enforced through a court of law. C. Building codes, enforced through state and city building councils.

D. Zoning, enforced through the zoning board. - ANSWERS✔✔ B. Private deed restrictions, enforced through a court of law. Which of the following adds land due to natural changes along non- navigable streams? A. Accretion B. Avulsion C. Erosion D. Reliction - ANSWERS✔✔ A. Accretion The recording of a deed: A. insures the interest in a parcel of real estate. B. warrants the title to real property. C. gives constructive notice of the ownership of real property. D. is all that is required to transfer the title to real estate. - ANSWERS✔✔ C. gives constructive notice of the ownership of real property. Subdivision regulations in North Carolina are administered and enforced by: A. the city and county local municipalities. B. through the state office of Code Enforcement. C. the state Department of Transportation. D. the developer and the local homeowner's association. - ANSWERS✔✔ C. the state Department of Transportation. With regard to road disclosures in North Carolina: A. a public street is guaranteed to be approved and maintained by NCDOT.

B. a licensee must disclose whether the streets are public or private and who has the responsibility for maintaining the street. C. the buyer representative and the listing agent are not required to make street disclosures. Such disclosures are the seller's responsibility. D. all public streets are maintained by NCDOT or our automatically maintained by the municipality where the streets are located. - ANSWERS✔✔ B. a licensee must disclose whether the streets are public or private and who has the responsibility for maintaining the street. Karen purchased a property and has a written and recorded document that gives her permanent ingress and egress to her parcel across an adjacent property. Which of the following statements is correct regarding Karen's situation? A. Karen has a license which will end when her term of ownership terminates. B. Karen has an easement in gross which is an appurtenance and travels with the property. C. She owns the dominant parcel and the adjacent property is the servient parcel. D. She owns the servient parcel and the parcel over which the easement runs is the dominant - ANSWERS✔✔ C. She owns the dominant parcel and the adjacent property is the servient parcel. The North Carolina Real Estate Commission consists of nine members, three of which must have a license and two which must be members of the public and not licensed. Which of the following is also true regarding the NCREC? A. The NC Real Estate Commission will not hear commission disputes between the agent and their client, but they will assist in the resolution of fee disputes between real estate licensees B. The terms of the NC Real Estate Commission are life-long appointments. C. Seven of the NC Real Estate commission members are appointed by the Governor, one is appointed by the house and one is appointed by the senate.

D. The NC Real Estate Commission is led by a commission chair that is also appointed by the Governor. - ANSWERS✔✔ C. Seven of the NC Real Estate commission members are appointed by the Governor, one is appointed by the house and one is appointed by the senate. Designated agency in North Carolina is considered: I. A form of dual agency II. Mandatory if you practice dual agency A. I only B. II only C. Both I and II D. Neither I nor II - ANSWERS✔✔ A. I only Designated agency can be practiced: I. Between two firms II. Between a broker-in-charge and a provisional broker licensee in their office A. I only B. II only C. Both I and II D. Neither I nor II - ANSWERS✔✔ D. Neither I nor II Under the general principles of agency, when a licensee is acting on behalf of a client and acts improperly who is liable for the acts of the licensee? A. only the client B. only the licensee and the broker-in-charge C. only the client and the licensee D. the client, the licensee, the firm and or the broker-in-charge - ANSWERS✔✔ D. the client, the licensee, the firm and or the broker-in- charge

A disclosure of agency status should be made by a buyer's agent to the seller: l. With a written confirmation in the offer to purchase and contract ll. At the initial contact with the seller's agent, orally or in writing A. l only B. ll only C. Both l and ll D. Neither l nor ll - ANSWERS✔✔ C. Both l and ll Which of the following would be dual agency? A. a broker-in-charge assisting a buyer client in the purchase of property that was listed by a provisional broker of another firm B. a provisional broker and a broker licensee from firms that are cooperating in a transaction C. a firm that represents buyers and sellers D. a broker having a buyer client for a property the broker personally listed

  • ANSWERS✔✔ D. a broker having a buyer client for a property the broker personally listed A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per front foot. How much money would an individual agent receive for a 60% share of the 10% commission earned? A. $640 B. $960 C. $1,600 D. $2,400 - ANSWERS✔✔ B. $960 A buyer-client has instructed the agent to show only properties where the seller is willing to pay the buyer agent's commission. The agent contacts an

owner selling a property without the assistance of a real estate agent with the hope that the seller would be willing to pay her commission if the buyer decided to purchase the seller's property. In order to comply with North Carolina Real Estate Commission Rules, the agent must do all of the following, EXCEPT: A. obtain permission from her buyer-client in order to obtain compensation from the seller B. disclose her agency status to the seller at initial contact C. convince the seller to list with her and authorize dual agency D. provide the Working with Real Estate Agents brochure to the seller - ANSWERS✔✔ C. convince the seller to list with her and authorize dual agency If the broker-in-charge (BIC) is to act as one of the designated agents on a North Carolina in-house transaction, which of the following may be appointed as a designated agent for the other party to the transaction? A. an actively licensed provisional broker within the firm, so long as disclosure is made to both clients B. a full broker within the firm who has no prior confidential knowledge of the party that the BIC will represent C. a broker-in-charge cannot be appointed as a designated agent D. a licensed broker who has prior confidential knowledge about the party that the BIC will represent - ANSWERS✔✔ B. a full broker within the firm who has no prior confidential knowledge of the party that the BIC will represent A licensee is an actively licensed real estate broker who has a written contract with his firm that specifies that he will not be treated like an employee. The licensee's entire income is from sales commissions rather than an hourly wage. Based on these facts, the licensee will be treated by the IRS as:

A. a real estate assistant B. an employee C. subagent D. an independent contractor - ANSWERS✔✔ D. an independent contractor All of the following are TRUE regarding the North Carolina Working With Real Estate Agents brochure, EXCEPT: A. the consumer is not required to sign the brochure B. if the first substantial contact is by phone, the brochure must be provided within 3 calendar days C. the brochure's use is mandatory in all real estate transactions, including residential sales, commercial transactions and property management D. the brochure must be given in all sales transactions at first substantial contact - ANSWERS✔✔ C. the brochure's use is mandatory in all real estate transactions, including residential sales, commercial transactions and property management All of the following are exempt from the requirement to provide an RPOADS and MOG, EXCEPT: A. Transfers between spouses B. First sale of a dwelling not yet inhabited C. Both parties agree not to complete the form D. A For Sale by Owner - ANSWERS✔✔ D. A For Sale by Owner The fact that the NC listing agreement and buyer agency agreement must be in writing is required by: A. Statute of Frauds B. Commission Rule