NC Real Estate Practice Test Questions
and Answers
Do purchase contracts reference commission? - Answer- No, they are in the
employment agreements
Delivery of Instrument Rule - Answer- Deliver all documents immediately, NEVER later
than 3 days
Can brokers draft legal documents? - Answer- No, they fill in the blanks
The purchase contract is a - Answer- conveyance document.
The deed is a - Answer- transfer of conveyance document.
Can an email serve as a contract? - Answer- No
What is in the NC offer to purchase contract? - Answer- 1. Agency Confirmation
2. Property Identification
3. Purchase Price and manor they are going to be paid
4. Effective Date
5. Settlement, Settlement Date and Closing
6. Fixtures & Personal Property
7. Buyer Representations and Obligations
8. Seller Representations and Obligations
9. Condition of Property/Risk of Loss
10. Delay in Settlement or Closing
Due Diligence Fee goes - Answer- to the seller on the effective date. Broker delivers.
Buyer controls until delivery.
Earnest Money goes - Answer- to a trust account within 5 days. PB delivers to BIC
immediately. BIC deposits in trust account within 3 business days.
NOTE: As long as money has not been delivered to the intended recipient then the
agent must follow the lawful command of the buyer. If they want their money back them
get it. If delivered then they cannot get it back. - Answer-
,Who keeps Ernest money and due diligence if the buyer cancels before 5:00pm on the
due diligence date? - Answer- The seller keeps the due diligence.
The buyer gets earnest money deposit back.
Who keeps Ernest money and due diligence if the buyer cancels after 5:00pm on the
due diligence date? - Answer- The seller keeps it all.
What is the due diligence money for? - Answer- To compensate the seller for taking the
house off the market.
How long can settlement be delayed? - Answer- up to 14 days
Either party can cause it. Non-punative
Closing is defined as - Answer- recordation. The recording of the deed.
What does additional provisions in a contract do? - Answer- limits time
When can you disclose multiple offer terms? - Answer- With the offeror's consent.
What turns an offer into a contract? - Answer- SIC
Signature
Initials
Communication
Last offerees SIC turns an offer into a contract.
Oral communication is the best. When the acceptance of the offer is communicated to
the other party/agent, the contract becomes binding in NC.
Can a agent accept an offer on behalf of their client? - Answer- No, they must
communicate the offer to the client.
Do you ever get a deed in installment land contracts? - Answer- No, the seller keeps it
until the last payment is made.
Installment Land Contracts - Answer- seller financing
What happens if a buyer lapses on payments in a installment land contract? - Answer-
The seller gets to keep everything.
When does a seller transfer title in a installment land contract? - Answer- Seller holds
title through the deed. Once full payment is defeasance (defeated)/all payments are
made, the seller transfers the title to the buyer.
When must the seller record in a installment land contract? - Answer- within 5 days of
execution
, What does the Connor Act require? - Answer- That DREAMOIL be recorded to be
enforceable.
What does the Statue of Frauds require? - Answer- That DREAMOILS be in writing.
Right of First Refusal means - Answer- I get to buy IF you decide to sell. Option to
Purchase
Who creates and maintains building codes? - Answer- Building codes are created at the
state level through the Building Code Council and enforced at the local level.
How do you activate your license? - Answer- Affiliating with a BIC
What do you need a license for? - Answer- LLBEANS
List
Lease
Buy
Exchange
Auciton
Negotiate
Sell (procure a ready, willing, or able buyer)
What is the 3 prong test? - Answer- To determine if you need a license.
1. LLBEANS
2. for others
3. for compensation
Exemptions to needing a license - Answer- 1. FSBO
2. Entity (LLC, Corp, Partnership)
3. Entity with W-2 employees
4. Attorney-in-fact
5. Attorney- at-law
6. Trustee executor, guardian
7. Trustee in a deed of trust.
8. Housing Authority
Assistants w/o a license in a realty office cannot do what? - Answer- Cold Call
Show Properties or hold open houses
Create or place advertisements
Work with clients
Assistants w/o a license in property management offices cannot do what? - Answer-
Negotiate leases or lease terms
Negotiate deposits or payments
(They CAN show properties and rental units)
and Answers
Do purchase contracts reference commission? - Answer- No, they are in the
employment agreements
Delivery of Instrument Rule - Answer- Deliver all documents immediately, NEVER later
than 3 days
Can brokers draft legal documents? - Answer- No, they fill in the blanks
The purchase contract is a - Answer- conveyance document.
The deed is a - Answer- transfer of conveyance document.
Can an email serve as a contract? - Answer- No
What is in the NC offer to purchase contract? - Answer- 1. Agency Confirmation
2. Property Identification
3. Purchase Price and manor they are going to be paid
4. Effective Date
5. Settlement, Settlement Date and Closing
6. Fixtures & Personal Property
7. Buyer Representations and Obligations
8. Seller Representations and Obligations
9. Condition of Property/Risk of Loss
10. Delay in Settlement or Closing
Due Diligence Fee goes - Answer- to the seller on the effective date. Broker delivers.
Buyer controls until delivery.
Earnest Money goes - Answer- to a trust account within 5 days. PB delivers to BIC
immediately. BIC deposits in trust account within 3 business days.
NOTE: As long as money has not been delivered to the intended recipient then the
agent must follow the lawful command of the buyer. If they want their money back them
get it. If delivered then they cannot get it back. - Answer-
,Who keeps Ernest money and due diligence if the buyer cancels before 5:00pm on the
due diligence date? - Answer- The seller keeps the due diligence.
The buyer gets earnest money deposit back.
Who keeps Ernest money and due diligence if the buyer cancels after 5:00pm on the
due diligence date? - Answer- The seller keeps it all.
What is the due diligence money for? - Answer- To compensate the seller for taking the
house off the market.
How long can settlement be delayed? - Answer- up to 14 days
Either party can cause it. Non-punative
Closing is defined as - Answer- recordation. The recording of the deed.
What does additional provisions in a contract do? - Answer- limits time
When can you disclose multiple offer terms? - Answer- With the offeror's consent.
What turns an offer into a contract? - Answer- SIC
Signature
Initials
Communication
Last offerees SIC turns an offer into a contract.
Oral communication is the best. When the acceptance of the offer is communicated to
the other party/agent, the contract becomes binding in NC.
Can a agent accept an offer on behalf of their client? - Answer- No, they must
communicate the offer to the client.
Do you ever get a deed in installment land contracts? - Answer- No, the seller keeps it
until the last payment is made.
Installment Land Contracts - Answer- seller financing
What happens if a buyer lapses on payments in a installment land contract? - Answer-
The seller gets to keep everything.
When does a seller transfer title in a installment land contract? - Answer- Seller holds
title through the deed. Once full payment is defeasance (defeated)/all payments are
made, the seller transfers the title to the buyer.
When must the seller record in a installment land contract? - Answer- within 5 days of
execution
, What does the Connor Act require? - Answer- That DREAMOIL be recorded to be
enforceable.
What does the Statue of Frauds require? - Answer- That DREAMOILS be in writing.
Right of First Refusal means - Answer- I get to buy IF you decide to sell. Option to
Purchase
Who creates and maintains building codes? - Answer- Building codes are created at the
state level through the Building Code Council and enforced at the local level.
How do you activate your license? - Answer- Affiliating with a BIC
What do you need a license for? - Answer- LLBEANS
List
Lease
Buy
Exchange
Auciton
Negotiate
Sell (procure a ready, willing, or able buyer)
What is the 3 prong test? - Answer- To determine if you need a license.
1. LLBEANS
2. for others
3. for compensation
Exemptions to needing a license - Answer- 1. FSBO
2. Entity (LLC, Corp, Partnership)
3. Entity with W-2 employees
4. Attorney-in-fact
5. Attorney- at-law
6. Trustee executor, guardian
7. Trustee in a deed of trust.
8. Housing Authority
Assistants w/o a license in a realty office cannot do what? - Answer- Cold Call
Show Properties or hold open houses
Create or place advertisements
Work with clients
Assistants w/o a license in property management offices cannot do what? - Answer-
Negotiate leases or lease terms
Negotiate deposits or payments
(They CAN show properties and rental units)
