NC Post-Licensing 303 Exam Study Ques ons With
Complete and Verified Answers(A+ Guarantee)
A Licensee may not earn compensa on when there license - VIP - Answer-is INACTIVE or EXPIRED
A Licensee can receive compensa on that was earned WHEN - VIPterm-0 - Answer-the license was
current and ac ve even if inac ve of expired a er
A BIC may NOT pay a licensee's ENTITY - Answer-unless the en ty has a firm license.
A Licensee can share commission with par es BUT - Answer-1) Must be in wri ng - as part of the
agreement
2) Must be subject to Lender Approval in case of loans
3) Disclosed on the Closing Disclosure
4) Is considered a gi
5) Only with principal or client (not others)
Compensa on ALWAYS flows through the firm - Answer-1) from the BIC
2) NO payment directly by the firm
3) Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships
,When Paying Non-Affiliated Brokers or Firms - Answer-1) Best Prac ce to put in wri ng - Not a Rule
2) May pay referral fees to brokers in any state if person has a CURRENT and ACTIVE license
3) DOCUMENTATION in broker's file:
- Wri en documenta on regarding fee
- Proof of licensure
- Copy of a W9 for Brokerage Insurance or a 1099
When receiving Bonuses & Incen ves - Answer-Disclosure AND consent by Principal is REQUIRED
RESPA Prohibits - Answer-KICKBACKS to
Se lement Service Providers
- BANKS
- APPRAISAL COMPANIES
- TITLE OFFICERS
- ATTORNEYS
RESPA STATUTE - Answer-Applies to:
- 1-4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED LOAN
- ENFORCED BY HUD
RESPA does not apply to (VIP) - Answer-1) Vacant Land Transac ons
, 2) Cash Transac ons
3) Seller Financed Transac ons
) Commercial Transac ons
RESPA CO-OWNERSHIP with different se lement service providers - Answer-Also known as:
- Affiliated Business Arrangements (ABAs)
- Controlled Business Arrangements (CBAs)
These are permi ed but 3 requirements:
1) Disclosure of the rela onship
2) Use of the service provider cannot be forced
3) must disclose fees
RESPA PROHIBITS - Answer-Real Estate Licenses from forcing client or customer to use a par cular
se lement service provider
Commercial Real Estate Lien Act says - Answer-Lien May be placed on Commercial proper es for
commercial service rendered in a sales or lease transac on
Commercial Real Estate Lien Requirements - Answer-1) Wri en Agreement specifying services and
compensa on
Complete and Verified Answers(A+ Guarantee)
A Licensee may not earn compensa on when there license - VIP - Answer-is INACTIVE or EXPIRED
A Licensee can receive compensa on that was earned WHEN - VIPterm-0 - Answer-the license was
current and ac ve even if inac ve of expired a er
A BIC may NOT pay a licensee's ENTITY - Answer-unless the en ty has a firm license.
A Licensee can share commission with par es BUT - Answer-1) Must be in wri ng - as part of the
agreement
2) Must be subject to Lender Approval in case of loans
3) Disclosed on the Closing Disclosure
4) Is considered a gi
5) Only with principal or client (not others)
Compensa on ALWAYS flows through the firm - Answer-1) from the BIC
2) NO payment directly by the firm
3) Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships
,When Paying Non-Affiliated Brokers or Firms - Answer-1) Best Prac ce to put in wri ng - Not a Rule
2) May pay referral fees to brokers in any state if person has a CURRENT and ACTIVE license
3) DOCUMENTATION in broker's file:
- Wri en documenta on regarding fee
- Proof of licensure
- Copy of a W9 for Brokerage Insurance or a 1099
When receiving Bonuses & Incen ves - Answer-Disclosure AND consent by Principal is REQUIRED
RESPA Prohibits - Answer-KICKBACKS to
Se lement Service Providers
- BANKS
- APPRAISAL COMPANIES
- TITLE OFFICERS
- ATTORNEYS
RESPA STATUTE - Answer-Applies to:
- 1-4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED LOAN
- ENFORCED BY HUD
RESPA does not apply to (VIP) - Answer-1) Vacant Land Transac ons
, 2) Cash Transac ons
3) Seller Financed Transac ons
) Commercial Transac ons
RESPA CO-OWNERSHIP with different se lement service providers - Answer-Also known as:
- Affiliated Business Arrangements (ABAs)
- Controlled Business Arrangements (CBAs)
These are permi ed but 3 requirements:
1) Disclosure of the rela onship
2) Use of the service provider cannot be forced
3) must disclose fees
RESPA PROHIBITS - Answer-Real Estate Licenses from forcing client or customer to use a par cular
se lement service provider
Commercial Real Estate Lien Act says - Answer-Lien May be placed on Commercial proper es for
commercial service rendered in a sales or lease transac on
Commercial Real Estate Lien Requirements - Answer-1) Wri en Agreement specifying services and
compensa on
