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Knowledge Development Topic 1: General
NC Licensing Requirements
Q1. Under NCGS 93A-2(a), which of the following activities requires an active real estate broker
license?
A) An owner selling their own property
B) Showing a listed property to a prospective buyer for compensation
C) A W-2 employee of a housing authority leasing housing authority property
D) An attorney conducting a closing
✔ Correct Answer: B
Showing property for compensation is a brokerage activity requiring an active license.
Exemptions include owners selling their own property, housing authority employees, and
attorneys (not acting as brokers).
Q2. Which of the following is NOT a required element for an activity to be considered
"brokerage" requiring a license?
A) Performing brokerage activities
B) For compensation or valuable consideration
C) Acting as an agent for others
D) Performing the activity for a family member
✔ Correct Answer: D
The definition of brokerage requires three elements: (1) performing brokerage activities, (2) for
compensation, (3) as an agent for others. The relationship to the person being assisted is not a
determining factor.
,Q3. An unlicensed person refers a potential buyer to a broker and receives $500 from the
broker. This is:
A) Permitted as a finder's fee
B) Permitted if the amount is under $1,000
C) Illegal – an unlicensed person cannot receive compensation for referring a party to a licensee
D) Permitted if the referral is in writing
✔ Correct Answer: C
NC law prohibits compensating an unlicensed person for finding, introducing, or referring a
party to a licensee. This includes finder's fees, bird dog fees, and referral fees.
Q4. A property management company hires a W-2 employee to show rental units. The
employee is NOT licensed. Which activity may this employee legally perform?
A) Negotiate the amount of security deposit
B) Execute preprinted form leases with predetermined terms
C) Negotiate lease terms with prospective tenants
D) Negotiate property management agreements with landlords
✔ Correct Answer: B
*NCGS 93A-2(c)(6) allows unlicensed W-2 employees of a broker to complete and execute
preprinted form leases with predetermined terms. They cannot negotiate deposits, lease terms,
or management agreements.*
Q5. A broker's license is inactive. The broker may:
A) List properties but not show them
B) Show properties but not list them
C) Receive a referral fee for a referral made while the license was active
D) Perform any brokerage activity as long as no commission is charged
✔ Correct Answer: C
A licensee may receive compensation that was earned when the license was current and active,
even if the license later becomes inactive. However, no new brokerage activity may be
performed with an inactive license.
Q6. Which of the following persons is EXEMPT from requiring a real estate license in NC?
A) A property owner selling their own home
, B) A property owner leasing their own commercial building
C) A W-2 employee of a corporation selling corporate-owned property
D) All of the above
✔ Correct Answer: D
*Exemptions include: individual property owners selling or leasing personally owned property;
officers and W-2 employees of corporations selling corporate-owned property; and W-2
employees of LLCs, partnerships, and housing authorities.*
Q7. A non-resident of North Carolina wants to obtain a license limited to commercial real estate
transactions in NC. This is called a:
A) Provisional commercial broker license
B) Non-resident limited commercial broker license
C) Commercial facilitator license
D) Out-of-state broker waiver
✔ Correct Answer: B
A non-resident limited commercial broker license is available to non-residents who hold an
active license in another state. It is limited to commercial real estate practice in NC.
Q8. A provisional broker may affiliate with:
A) Multiple BICs at the same time with mutual consent
B) Only one BIC at a time
C) Any BIC without restriction
D) Only the BIC who sponsored their prelicensing course
✔ Correct Answer: B
A provisional broker may only affiliate with one BIC at a time. Full brokers may affiliate with
multiple BICs with mutual consent.
Q9. To become a Broker-in-Charge (BIC) in North Carolina, a broker must:
A) Be a full broker with 2 years of experience within the past 5 years and complete the 12-hour
BIC course
B) Be a provisional broker with 1 year of experience
C) Complete 75 hours of prelicensing education
D) Pass the national real estate exam
Vault: High-Quality Exam Practice
Questions with Expertly Written, Accurate &
Detailed Answers for Comprehensive
Knowledge Development Topic 1: General
NC Licensing Requirements
Q1. Under NCGS 93A-2(a), which of the following activities requires an active real estate broker
license?
A) An owner selling their own property
B) Showing a listed property to a prospective buyer for compensation
C) A W-2 employee of a housing authority leasing housing authority property
D) An attorney conducting a closing
✔ Correct Answer: B
Showing property for compensation is a brokerage activity requiring an active license.
Exemptions include owners selling their own property, housing authority employees, and
attorneys (not acting as brokers).
Q2. Which of the following is NOT a required element for an activity to be considered
"brokerage" requiring a license?
A) Performing brokerage activities
B) For compensation or valuable consideration
C) Acting as an agent for others
D) Performing the activity for a family member
✔ Correct Answer: D
The definition of brokerage requires three elements: (1) performing brokerage activities, (2) for
compensation, (3) as an agent for others. The relationship to the person being assisted is not a
determining factor.
,Q3. An unlicensed person refers a potential buyer to a broker and receives $500 from the
broker. This is:
A) Permitted as a finder's fee
B) Permitted if the amount is under $1,000
C) Illegal – an unlicensed person cannot receive compensation for referring a party to a licensee
D) Permitted if the referral is in writing
✔ Correct Answer: C
NC law prohibits compensating an unlicensed person for finding, introducing, or referring a
party to a licensee. This includes finder's fees, bird dog fees, and referral fees.
Q4. A property management company hires a W-2 employee to show rental units. The
employee is NOT licensed. Which activity may this employee legally perform?
A) Negotiate the amount of security deposit
B) Execute preprinted form leases with predetermined terms
C) Negotiate lease terms with prospective tenants
D) Negotiate property management agreements with landlords
✔ Correct Answer: B
*NCGS 93A-2(c)(6) allows unlicensed W-2 employees of a broker to complete and execute
preprinted form leases with predetermined terms. They cannot negotiate deposits, lease terms,
or management agreements.*
Q5. A broker's license is inactive. The broker may:
A) List properties but not show them
B) Show properties but not list them
C) Receive a referral fee for a referral made while the license was active
D) Perform any brokerage activity as long as no commission is charged
✔ Correct Answer: C
A licensee may receive compensation that was earned when the license was current and active,
even if the license later becomes inactive. However, no new brokerage activity may be
performed with an inactive license.
Q6. Which of the following persons is EXEMPT from requiring a real estate license in NC?
A) A property owner selling their own home
, B) A property owner leasing their own commercial building
C) A W-2 employee of a corporation selling corporate-owned property
D) All of the above
✔ Correct Answer: D
*Exemptions include: individual property owners selling or leasing personally owned property;
officers and W-2 employees of corporations selling corporate-owned property; and W-2
employees of LLCs, partnerships, and housing authorities.*
Q7. A non-resident of North Carolina wants to obtain a license limited to commercial real estate
transactions in NC. This is called a:
A) Provisional commercial broker license
B) Non-resident limited commercial broker license
C) Commercial facilitator license
D) Out-of-state broker waiver
✔ Correct Answer: B
A non-resident limited commercial broker license is available to non-residents who hold an
active license in another state. It is limited to commercial real estate practice in NC.
Q8. A provisional broker may affiliate with:
A) Multiple BICs at the same time with mutual consent
B) Only one BIC at a time
C) Any BIC without restriction
D) Only the BIC who sponsored their prelicensing course
✔ Correct Answer: B
A provisional broker may only affiliate with one BIC at a time. Full brokers may affiliate with
multiple BICs with mutual consent.
Q9. To become a Broker-in-Charge (BIC) in North Carolina, a broker must:
A) Be a full broker with 2 years of experience within the past 5 years and complete the 12-hour
BIC course
B) Be a provisional broker with 1 year of experience
C) Complete 75 hours of prelicensing education
D) Pass the national real estate exam
