Licence Law 1 Engrade Review Practice Quiz

When is the first point at which a provisional broker may begin practicing real estate in NC? A. when the NCREC receives notification of the provisional broker's activation with a BIC B. upon successful completion of all course work and required examinations C. upon completion of all educational requirements D. upon formal notification from the NCREC that the candidate has successfully passed the real estate examination and has been issued a license number

A

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

A

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

B

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? A. Active B. Inactive C. Expired D. Suspended

B

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

B

In regard to real estate fees and commissions between brokerages and clients what is the role of the NC 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

B

It is correct to say that the NC Real Estate Commission may not fine a real estate licensee. However, the NC Real Estate Commission may do which of the following? A. order licensees to pay clients for damages caused and arbitrate disputes over fees B. fine a timeshare developer up to $500 per violation of the Timeshare Act C. revoke a broker's license if the broker fails to take the required number of continuing education hours per year D. dictate the amount of commission brokers may charge their clients and resolve commission disputes between agents

B

Henri is the manager and owner of his own LLC. He has a full time salaried staff person, Sheila, that he employs to work for his LLC. Henri's company is buying homes, renovating them and putting them back on the market. He has Sheila show the properties to prospective buyers. Who is in violation of NC Licensing Law? A. Only Henri B. Only Sheila C. Both Henri and Sheila D. Neither Henri or Sheila

C

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

C

In North Carolina under the Residential Property Disclosure Act, sellers of 1-4 unit residential properties must complete a MOG (Mineral, Oil & Gas Disclosure). The purposes of this law include all of the following, EXCEPT: A. to require sellers to disclose to buyers if mineral, oil and gas rights have been severed from the property. B. to require sellers to disclose to buyers if mineral, oil and gas rights have been leased separately. C. to prevent sellers from severing mineral, oil and gas rights from a property D. to inform buyers if the seller does not intend to transfer mineral, oil and gas rights

C

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

C

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.

C

Which of the following statements is true about timeshares? A. They do not have to be registered with the NC Real Estate Commission B. They may be transferred prior to registering with the NC Real Estate Commission C. They must be registered with the NC Real Estate Commission prior to sale D. The timeshare broker may be fined by the NC Real Estate Commission

C

With regard to timeshares, all of the following are true, EXCEPT: A. A timeshare developer and broker must maintain records of sales, rentals or exchange transactions for a minimum of three years. B. All monies received by a timeshare developer or broker must be deposited within three banking days of receipt and remain in the trust account for ten days from the date of sale or until cancellation by the purchaser, whichever occurs first C. Timeshares are not considered real estate and no license is required to sell timeshares in NC D. Any refunds due to a cancellation of a timeshare purchase will be refunded within 30 days following the date of execution of the contract

C

A provisional broker is subject to two separate education requirements. They must complete post-licensing education of 90 hours within 3 years from the date of licensure. When must a provisional broker complete their first 8 hour CE requirement? A. Within 1 year of the date of licensure B. At the conclusion of their post licensing education C. At the time of the first renewal of their license D. Prior to the 2nd renewal of their real estate license

D

All of the following could result in disciplinary actions by the NC Real Estate Commission for unworthiness or incompetence, EXCEPT: A. making any willful or negligent misrepresentation B. pursuing a course of making false promises C. accepting commissions or valuable consideration as provisional broker from any person other than your Broker in Charge D. Attempting to take all of the post licensing courses in a single year

D

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

D

All of the following statements are correct regarding the NCREC, EXCEPT: A. They shall be entitled to the services of the Attorney General of NC 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 by laws, rules and regulations that are inconsistent with the provisions of the general statutes

D

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 contact 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 way of saying thank you

D

If a provisional broker does not complete the three 30-hour broker postlicensing courses within three years, what is their license status after the three-year period? A. active B. expired C. cancelled D. inactive

D

In the event that a licensee's annual renewal fee is returned unpaid, the NC Real Estate Commission may take all of the following actions, EXCEPT: A. deny licensure renewal B. suspend the agent's license C. revoke the agent's license D. fine the agent

D

Sherry is a provisional broker who works for a residential sales BIC and firm in North Carolina. Sherry has a couple of clients who want her to manage their rental properties. What are Sherry's options? A. Sherry can manage the properties on her own outside of her existing firm B. With the permission of her BIC Sherry can also affiliate with another firm that engages in property management. C. Sherry can manage the rental properties only if she obtains a power of attorney from the owners. D. Sherry can refer the clients to a property management firm and earn a referral fee that is paid to her through her BIC

D

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

D

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 $30,0000 C. the improvements are to a primary residence D. a new roof is being placed on a vacation rental unit that costs $42,000

D

Which of the following must have a NC real estate license? A. A crier of sales B. An investor who is purchasing rental properties and placing them back on the market for sale C. The executor of an estate selling their parents property and receiving a fee as the executor D. An auctioneer

D

How long is an applicant's Examination Eligibility Period to take the NC Real Estate Examination once the Commission has approved their application A. 60 days B. 90 days C. 180 days D. 360 days

C

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

A

A NC provisional broker's real estate license is initially issued on what type of status? A. active B. inactive C. probationary D. expired

B

A provisional real estate broker must remove the provisional status of their license by taking 90 hours of post licensing courses. The 90 hour courses are divided into three 30 hour courses. A provisional broker must take at least one of these thirty hour courses by which date? A. the annual renewal date of their real estate license B. the anniversary date of their real estate license C. the end of the first calendar year their license was obtained D. the second renewal of their real estate license

B

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

B

The NC Homestead Exemption would be of importance and have the greatest impact on: A. a borrower who is in default on their property and facing foreclosure B. an individual who filed bankruptcy due to excessive medical bills and judgment liens C. an investor who must engage in the short sale of an investment property D. a married couple who is selling their primary residence to a buyer

B

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

C

All of the following would constitute an illegal action by an inactive licensee who is not affiliated with a firm, EXCEPT: A. telling members of a networking club that they are a broker and offering members of the club their services B. handing out business cards at a social gathering C. telling a new acquaintance that they are a broker, but they are on inactive status D. hosting an open house for another agent

C

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

C

All of the following are TRUE if a time share is not properly registered in NC and a public offering statement is not provided to a buyer prior to contract under the NC Time Share Act, EXCEPT: A. it is a felony to not register the units B. the purchaser may be entitled to a penalty of 10% of their purchase price or $3,000 whichever is greater C. the purchaser has a five day rescission period to cancel their purchase without penalty D. the buyer and the developer may agree to waive both the 5 day cancellation period and the providing of a public offering statement.

D

All of the 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

D

All of the following are powers of the NC Real Estate Commission, EXCEPT: A. to conduct announced or unannounced audits of licensees B. to subpoena the books, records and bank statements and accounts of a licensee C. to seek injunctive orders in court D. to order licensees to make restitution to clients and levy fines

D

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

D

All of the following are true when a real estate license is inactive due to a CE deficiency, EXCEPT: A. the licensee must complete all CE for the current year and make up the past deficiency up to a maximum of 16 hours B. the licensee must file an activation form one all CE is current C. the licensee may not earn any commissions or referral fees while inactive D. if the inactivity is for longer than 5 years the license will be considered expired

D

When a corporation is involved in the sale or leasing of property that is owned by the corporation, who is exempt from the requirement to possess a real estate license? A. Only the officers of the corporation B. Only the directors of the corporation C. Only the officers and directors of the corporation D. The corporation's officers, directors and all W2 salaried employees are exempt from licensure

D

All of the following are required in order to obtain a NC real estate license, EXCEPT: A. a high school diploma B. completing an application C. successfully completing a 75 hour course and passing a school final examination D. age of at least 18

A

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? A. They are guilty of a felony B. They are guilty of a misdemeanor C. They are subject to a fine of up to $10,000 D. They are subject to civil sanctions and a civil lawsuit

A

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 an they are paid C. An agent who's license in 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

C

All of the following are TRUE about the character issue of an applicant for a NC Real Estate License, EXCEPT: A. an applicant must possess honesty, integrity and good moral character B. a mandatory criminal background check is required C. the Commission makes a character determination before an applicant is permitted to take the NC Licensing Examination D. an applicant has 60 days to request a hearing if the Commission determines that they do not possess satisfactory character

C

All of the following are correct statements about the composition of the NCREC, EXCEPT: A. there are 9 appointed members of the NC Real Estate Commission B. the chairman of the Commission is elected by the Commission members C. commission members serve 5 years term D. there are at least three licensees and at least two laypeople serving on the commission

C

All of the following are true of a project broker within a NC Time Share, EXCEPT: A. the project broker is designated by the developer or owner of the time share B. the project broker must be an actively licensed broker C. a provisional broker may serve as a project broker D. the project broker is responsible for supervision and management of the time share project and all licensees that are associated with the project

C

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

C

An applicant will forfeit both their examination and license application fees and their license will be canceled for all of the following, EXCEPT: A. Failure to take the examination within the 180 day period B. Failure to appear for an examination appointment as scheduled C. Attempting to reschedule an examination appointment D. Appearing more than 15 minutes late for a scheduled examination appointment

C

An individual licensed in another state may receive a waiver of the NC education requirement to complete the 75 hour Broker Prelicense course if they meet which of the following criteria: A. They must have been licensed in another state for a minimum of 10 years B. They must have taken another state's course within the last 5 years C. Successful completion of another state's prelicense course of at least 75 hours within the last 3 years. D. Be a resident of North Carolina

C

An unlicensed assistant may do all of the following activities, EXCEPT: A. enter listings into the MLS 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

C