NC RE Exam 6 Questions and Answers
100% Pass
Which of these activities requires a real estate license in North Carolina? ✔✔Offering to help
another person sell their real estate in exchange for compensation.
Which of
...
NC RE Exam 6 Questions and Answers
100% Pass
Which of these activities requires a real estate license in North Carolina? ✔✔Offering to help
another person sell their real estate in exchange for compensation.
Which of these tasks may the unlicensed employees at ABC Brokerage perform? ✔✔Call a
client to schedule an appointment with a licensee.
Broker Ursula is speaking with Joel, who is beginning the process of looking for a home to buy.
She presents the Working With Real Estate Agents brochure. Which of these is NOT part of
Ursula's disclosure duty in this situation? ✔✔Show Joel where to locate records of broker
disciplinary actions on the real estate commission's website.
Broker Jean is ready to make a listing presentation for seller Ed. Which of these forms should
she present to Ed first? ✔✔The Working With Real Estate Agents brochure
When a consumer signs the Working With Real Estate Agents brochure, does it create the
written informed consent required for a broker to act as a dual agent? ✔✔No, it serves only to
educate the consumer about dual agency and satisfies the requirement for consent to be
informed.
Which of these is recognized as a limitation on a broker's service to clients when the licensee is
acting as a dual agent? ✔✔The ability to advise a client based on the licensee's complete
knowledge of facts related to the transaction.
What is a designated agent in North Carolina? ✔✔An affiliated broker appointed by the BIC to
represent one side of a transaction.
Broker Sherry has just helped her buyer client draft an offer. Which of these actions is NOT
required of Sherry? ✔✔She must have the seller's signature on the contract notarized.
Which of these actions is a real estate licensee allowed to perform? ✔✔Fill in the blanks on a
standard form according to a client's instructions.
What is a broker's price opinion (BPO)? ✔✔A report of property value that is prepared by a real
estate licensee and does not meet the definition of an appraisal.
Which of these scenarios describes proper disbursement of the earnest money deposit held in
Dinwinkle Realty's trust account? ✔✔Dinwinkle's BIC, Andrea, disburses the earnest money to
the closing agent for the transaction five business days before the scheduled closing.
What must broker Pete disclose in the written agency contract with seller Josh? ✔✔All
compensation Josh will pay for brokerage services.
Which business entity is NOT required to have a firm license issued by the North Carolina Real
Estate Commission? ✔✔Sole proprietorship
Broker Donald regularly advertises himself as a top agent in the area, although he has no data to
back up this claim. Is Donald guilty of engaging in a prohibited practice? ✔✔Yes, this is the
prohibited practice of pursuing a course of misrepresentation or false promises.
Which licensee is guilty of improper, dishonest, or fraudulent dealing as it's defined by the real
estate commission? ✔✔Helen makes an appointment to show a prospective tenant a unit at a
property she manages. When she meets the individual and sees that he is Chinese, she tells him
the unit has been taken even though it hasn't.
Licensees may request the commission's permission to surrender their license under what
circumstances? ✔✔The licensee is under investigation and is facing the prospect of license
discipline.
Oswald is a time share salesperson. When he accepts an earnest money deposit from a buyer,
what is he required to do with it? ✔✔Deliver it immediately to his project broker.
North Carolina counties must assess real property for tax value at least every: ✔✔Eight years
Randy just sold his North Carolina home and must pay the excise tax. What is the excise tax
rate? ✔✔The rate is $1.00 per $500 of property value.
Broker Sebastian likes to make transactions as easy to understand for his clients as possible. For
example, when using the standard form 2-T to write an offer, he deletes the words "time being of
the essence" from several provisions where it occurs, and replaces it with the words "You must
meet this deadline." What's true about what Sebastian's action? ✔✔He's violated a commission
rule that prohibits brokers from inserting their own provisions in preprinted contracts.
Commission rules prohibit which of these clauses from appearing in a preprinted purchase and
sales contract? ✔✔A provision that allows earnest money to be forfeited to a broker or firm.
Which source of funds given to a settlement agent is NOT considered "good funds" under the
North Carolina Good Funds Settlement Act? ✔✔Personal check
Which of these is a tenant's statutory duty under the North Carolina Residential Rental
Agreements Act? ✔✔Keep the premises clean and safe as much as possible.
Dharma has obtained the Broker-in-Charge eligible status on her license. What does she need to
do to maintain this status? ✔✔Complete the 12-hour Broker-in-Charge Update course each time
she renews her license.
Broker Peggy is acting as the property manager for owner Brad's apartment complex. When she
accepts security deposits from tenants, what is she required to do with the funds? ✔✔Deposit
and hold them in the brokerage trust account used for that purpose.
Mandy has listed her seller's property as 1,644 square feet of living area. After the buyer receives
the appraisal report, the buyer is angry because the appraiser identifies the square footage as only
1,230 square feet. What can Mandy do? ✔✔Explain to the buyer that the appraiser's
measurement includes only above-grade areas, while her own measurement includes all living
area.
Lucas just bought a home. He owns the land the home sits on as well as the structure itself,
though he shares a common wall with his neighbor. He now belongs to the HOA, and the fees he
pays help to maintain common areas in the development, though Lucas has no ownership interest
in those areas. What does Lucas own? ✔✔A townhouse
Broker Bradley is preparing to act as a seller's agent for a lot in a new subdivision. Which of
these actions should Bradley take before accepting the listing? ✔✔Request a copy of the
approved and recorded subdivision plat.
Broker Gigi is looking at a parcel of unimproved rural property with her buyer client. It will need
an on-site septic system. Which of these permits will NOT be needed to get the system up and
running for Gigi's buyer? ✔✔Installation permit
The home inspector tells you, "There is damage to the mud sill." What construction element is
the inspector referring to? ✔✔The horizontal piece attached to the foundation on which the floor
joists sit.
You're showing your buyer clients, the Smiths, through the spacious four-bedroom home that's
listed at a price almost within their budget. You think it would be a perfect home for their multi-
generational family, but Mrs. Smith shakes her head. "All these little stairs between the levels
will make it difficult for my mom," she explains. What is the most likely architectural style of
the home they're looking at? ✔✔Split level
What's FALSE about the income tax deductions a homeowner can take? ✔✔Income tax
deductions a homeowner is allowed to take apply only to a primary residence.
If a borrower's monthly debt, including housing expenses, equals $3,300, and his monthly
income equals $7,900, what is this person's debt to income ratio? ✔✔The debt-to-income ratio is
42%.
An income property has annual rental income of $960,000 and extra income from parking fees
and the coin-operated laundry machines of $6,420. This property sells for $10,630,620. What is
the GIM? ✔✔The GIM is 11.
Which of these forms of discipline is the North Carolina Real Estate Commission authorized to
take against a licensee found guilty of violating license law? ✔✔Suspend or revoke the licensee's
license.
Licensees must report criminal convictions to the commission. What's NOT true about this
requirement? ✔✔The reporting requirement applies to felonies, not misdemeanors.
Judy is the Broker-in-Charge at her firm. What are the CE requirements for Judy to keep her BIC
eligible status? ✔✔Four hours of electives and the four-hour Broker-In-Charge Update course.
Which of these is a required item on all written agency agreements? ✔✔The broker's license
number.
An oral agency agreement is allowed only when all of these are present EXCEPT: ✔✔It has a
specific end date.
Linus is the listing agent for Mona. Which of these actions is Linus required to perform? ✔✔He
must advise Mona regarding the sale of her home using his real estate expertise.
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