NC REAL ESTATE EXAM QUESTIONS
AND CORRECT ANSWERS
When escrow money is deposited into a trust account to purchase a North Carolina time
share, how long does the purchaser have to exercise a cancellation option? - Answer-
The purchaser can cancel the transaction for five days after deposit.
Before becoming a broker-in-charge, a North Carolina broker must first apply for
______ with the NCREC. - Answer- Eligibility
An actively licensed North Carolina broker must meet certain qualifications and apply for
BIC-eligible status with the NCREC. No special certifications or licensure is required.
North Carolina buyer Max wanted to pay the due diligence fee and initial earnest money
deposit by personal check. Which of the following statements is correct in this situation?
- Answer- Both fees may be paid by personal check, but each must be paid separately
in checks made out to different people.
Whose responsibility is it to make sure that a preliminary plat approval exists before
listing a property? - Answer- The broker
Lauren has a one-year lease with Cameron, who owns the cottage that she lives in.
What is this an example of? - Answer- Privity of estate
Privity of estate is when two or more parties hold an interest in the same real property
A Winston-Salem broker and his client fulfill the listing agreement, and the agency
relationship is terminated. At what point did the agent's fiduciary duty of confidentiality to
this client terminate? - Answer- When the listing agreement terminated
The duty of confidentiality expires when the listing agreement expires.
Buyer Melinda's new townhome is set to close escrow a week from today. She just
received her final, recorded, plat but was extremely disappointed to see that they moved
the green space which was supposed to be behind her unit to another part of the
subdivision. How long does she have to legally terminate her agreement? - Answer- In
15 days.
As a North Carolina licensee, which of the following best describes your duty of honesty
to all parties? - Answer- Using your professionalism to uncover a problem with the
boundaries that determine the size of your client's property
The North Carolina Residential Rental Agreements Act states that ______. - Answer-
The tenant must property dispose of all waste and garbage in a safe and clean manner
, Under the North Carolina Residential Rental Agreements Act, both landlords and
tenants have certain duties. Among them, landlords must keep the property in a safe,
habitable condition, and tenants must properly dispose of garbage in a clean and safe
manner.
Sophie had an ethical difference of opinion with her broker-in-charge, so she decided to
terminate her association with the brokerage and move to another one. What happens
next? - Answer- The broker-in-charge will contact the commission regarding the change
within 10 days.
What pieces of information regarding compensation must be disclosed to the relevant
transaction parties in order for a North Carolina broker to accept the compensation? -
Answer- he name of the party paying the compensation and the type and amount of the
compensation
North Carolina seller Nick and buyer Heather are negotiating an Offer to Purchase and
Contract Agreement, Standard Form 2-T. The ______ occurs when all documents
necessary to complete this transaction have been properly executed and delivered to
the closing attorney. - Answer- Settlement
The closing attorney must receive all appropriate documentation and necessary funds
necessary to complete the transaction.
What does the Effect of Agreement section communicate on the North Carolina
Exclusive Right to Represent Buyer Agency Agreement? - Answer- The buyer agrees to
conduct negotiations through the brokerage
The Effect of Agreement section states that by employing the firm under this contract,
the buyer agrees to conduct all negotiations through the firm, and to refer all inquiries to
the firm.
Which of the following is a type of joint tenancy that's only available to married buyers in
North Carolina? - Answer- Tenancy by the entirety
Tenancy by the entirety is the default ownership for married buyers in North Carolina.
Which of the following statements is true about pocket cards in North Carolina? -
Answer- Licensees must be able to produce a pocket card at any time as proof of
licensure.
North Carolina brokers must be able to produce a pocket card (in paper or digital form)
at any time as proof of licensure. Pocket cards don't indicate if a license is active or
inactive. The commission issues pocket cards annually to each broker.
AND CORRECT ANSWERS
When escrow money is deposited into a trust account to purchase a North Carolina time
share, how long does the purchaser have to exercise a cancellation option? - Answer-
The purchaser can cancel the transaction for five days after deposit.
Before becoming a broker-in-charge, a North Carolina broker must first apply for
______ with the NCREC. - Answer- Eligibility
An actively licensed North Carolina broker must meet certain qualifications and apply for
BIC-eligible status with the NCREC. No special certifications or licensure is required.
North Carolina buyer Max wanted to pay the due diligence fee and initial earnest money
deposit by personal check. Which of the following statements is correct in this situation?
- Answer- Both fees may be paid by personal check, but each must be paid separately
in checks made out to different people.
Whose responsibility is it to make sure that a preliminary plat approval exists before
listing a property? - Answer- The broker
Lauren has a one-year lease with Cameron, who owns the cottage that she lives in.
What is this an example of? - Answer- Privity of estate
Privity of estate is when two or more parties hold an interest in the same real property
A Winston-Salem broker and his client fulfill the listing agreement, and the agency
relationship is terminated. At what point did the agent's fiduciary duty of confidentiality to
this client terminate? - Answer- When the listing agreement terminated
The duty of confidentiality expires when the listing agreement expires.
Buyer Melinda's new townhome is set to close escrow a week from today. She just
received her final, recorded, plat but was extremely disappointed to see that they moved
the green space which was supposed to be behind her unit to another part of the
subdivision. How long does she have to legally terminate her agreement? - Answer- In
15 days.
As a North Carolina licensee, which of the following best describes your duty of honesty
to all parties? - Answer- Using your professionalism to uncover a problem with the
boundaries that determine the size of your client's property
The North Carolina Residential Rental Agreements Act states that ______. - Answer-
The tenant must property dispose of all waste and garbage in a safe and clean manner
, Under the North Carolina Residential Rental Agreements Act, both landlords and
tenants have certain duties. Among them, landlords must keep the property in a safe,
habitable condition, and tenants must properly dispose of garbage in a clean and safe
manner.
Sophie had an ethical difference of opinion with her broker-in-charge, so she decided to
terminate her association with the brokerage and move to another one. What happens
next? - Answer- The broker-in-charge will contact the commission regarding the change
within 10 days.
What pieces of information regarding compensation must be disclosed to the relevant
transaction parties in order for a North Carolina broker to accept the compensation? -
Answer- he name of the party paying the compensation and the type and amount of the
compensation
North Carolina seller Nick and buyer Heather are negotiating an Offer to Purchase and
Contract Agreement, Standard Form 2-T. The ______ occurs when all documents
necessary to complete this transaction have been properly executed and delivered to
the closing attorney. - Answer- Settlement
The closing attorney must receive all appropriate documentation and necessary funds
necessary to complete the transaction.
What does the Effect of Agreement section communicate on the North Carolina
Exclusive Right to Represent Buyer Agency Agreement? - Answer- The buyer agrees to
conduct negotiations through the brokerage
The Effect of Agreement section states that by employing the firm under this contract,
the buyer agrees to conduct all negotiations through the firm, and to refer all inquiries to
the firm.
Which of the following is a type of joint tenancy that's only available to married buyers in
North Carolina? - Answer- Tenancy by the entirety
Tenancy by the entirety is the default ownership for married buyers in North Carolina.
Which of the following statements is true about pocket cards in North Carolina? -
Answer- Licensees must be able to produce a pocket card at any time as proof of
licensure.
North Carolina brokers must be able to produce a pocket card (in paper or digital form)
at any time as proof of licensure. Pocket cards don't indicate if a license is active or
inactive. The commission issues pocket cards annually to each broker.
