NC State Exam Questions With All
Correct Answers
Which of the following activities does NOT require a real estate license ?
A . Holding a real estate auction
B . Selling property listed by other brokers or agencies
C . Showing and selling one's own property
D . Offering to buy properties on behalf of third parties - ANSWER- C . Buying or sell
properties for one's own benefit or for the benefit of a family member generally does not
require a license . However , only licensed professionals may engage in transactions on
behalf of third parties . Additionally , brokers or provisional brokers selling their own
properties must disclose that fact to the public .
In addition to selling one's own property , which of the following is also exempt from
normal licensing requirements ?
A . Acting as a guardian .
B . Acting as a trustee .
C . Acting as an attorney - in - fact .
D . Each of the above - ANSWER- D . Although often limited in scope ( such as the
authority to negotiate tax matters or conduct real estate transactions ) , someone
performing any of these duties " becomes " the person he or she is representing . No
license is required because that person is now acting , in effect , on his or her own
behalf .
As long as it is specified as part of his or her duties , is it legal for an unlicensed salaried
assistant to solicit listings for the broker ?
A . Yes , if it is part of a written job description .
B . No , soliciting listings is the exclusive responsibility of the broker - in - charge .
C . Yes , because she is being paid a salary , not commissions .
D . No , active participation in real estate transactions requires a license - ANSWER- D .
Tasks such as answering phones or making copies are considered support and don't
require any licensing or course work . However , activities such as soliciting listings or
providing information about a property are part of the transaction process and may be
handled only by licensed real estate professionals .
Regarding the North Carolina Real Estate Commission , which of these statements is
true ?
,A . A monthly salary plus expenses is paid to each member .
B . The North Carolina Association of Realtors ® appoints the members .
C . The governor appoints members for a three - year term .
D . The Commission consists of seven members , all of whom must be active in real
estate - ANSWER- C . The governor appoints members to the Commission .
Additionally , there are nine , not seven members and , although at least three must be
active in real estate , there also must be at least two non - licensed " public members . "
Which of these is a requirement to hold a real estate license in North Carolina ? 1 ) Be a
resident in good standing of the state . 2 ) Be at least 21 years old .
A . Only # 1 .
B . Only # 2 .
C . Neither # 1 nor # 2 .
D . Both # 1 and # 2 - ANSWER- C . In North Carolina , the minimum age requirement
is 18 , not 21 . In addition to course - work and exam requirements , one must also be of
good character , though not a " resident in good standing . "
Licensees must notify the Real Estate Commission when which of these events occur ?
A . There is a significant change in sales volume .
B . The business tradename has changed within the past ten days .
C . The business trade - name has changed within the past thirty days .
D . The licensee has received more than two traffic violations within the past eighteen
months - ANSWER- B . Licensees have ten days in which to notify the Commission of
any change in their business name , trade - name or address .
What is the first point at which a person may begin practicing real estate in North
Carolina ?
A . When a broker activates his or her license .
B . Upon successful completion of all course and exam work .
C . Upon completion of all education requirements .
D . Upon completion of course work requirements , successfully pass the exam and
finish a recognized training program - ANSWER- A . In effect , obtaining a provisional
brokers license means that a person is now eligible to be hired by a broker . Only
,provisional brokers operating under the direct supervision of a broker may actually sell
real estate .
Which of these is required to be a broker - in - charge ? 1 ) An active broker's license for
the state of North Carolina . 2 ) Eight hours of continuing education each year .
A . Only # 1 .
B . Only # 2 .
C . Neither # 1 nor # 2 .
D . Both # 1 and # 2 - ANSWER- D . Unlike some other states , North Carolina requires
Brokers - in - Charge to complete continuing education requirements every year in
addition to holding an active broker's license . In addition , beginning July 1 , 2006 , all
brokers - in - charge must complete a four classroom hour Broker - in - Charge Annual
Review Course each full license period after being designated a broker - in - charge .
This will count as their elective course for the license period . The broker - in - charge
must also complete the Real Estate Update continuing education course each license
period as well .
What is " first substantial contact ? "
A . An initial meeting to formalize a client - agency relationship .
B . A flexible standard for establishing client - agency relationships .
C . A new agent's first listing agreement or sales contract .
D . The point at which buyers or sellers must be given the North Carolina consumers '
real estate disclosure document - ANSWER- D . Although answers 1 and 2 answer are
both partially correct , the real purpose of " first substantial contact " is to give
prospective clients the information they need to fully understand the roles ,
responsibilities and loyalties of real estate agents in different kinds of relationships .
This information must be provided before any client - agency agreements are presented
.
What is the definition of " dual agency " in North Carolina ?
A . One firm represents both the buyer and the seller equally .
B . One firm represents the seller and another represents the buyer in the same
transaction .
C . One firm represents both the buyer and the seller , but owes primary loyalty to seller
.
D . One firm represents both the buyer and the seller , but owes primary loyalty to the
buyer - ANSWER- A . Dual agency is legal in North Carolina , but requires a written
, agreement signed by all parties that includes compensation details . Further , licensees
must represent the interests both parties in the transaction equally .
What is " designated agency " in North Carolina ?
A . An alternative to dual agency .
B . A form of dual agency .
C . A minimum standard for client representation .
D . A form of representation that every company in NC must practice - ANSWER- B .
Designated agency occurs when firms that practice dual agency assign one agent to the
seller and another to the buyer in an effort to better represent the interests of each party
.
Who may practice designated agency ?
A . Only one firm representing the buyer and seller in the same transaction .
B . Only two firms involved in the same transaction .
C . Only brokers .
D . Designated agency can be practiced by firms who do not practice dual agency in
North Carolina - ANSWER- A . By definition , designated agency occurs only when one
firm represents both buyer and seller in the same transaction . Further , only firms that
practice dual agency have the option of designated agency and it is the broker - in -
charge who makes the decision .
Sally Lennox , a provisional broker working under the guidance of XYZ Real Estate
Company , and with the owner's knowledge , deliberately fails to disclose that there is a
dispute regarding title to the property . Who , if anyone , is liable in this situation ?
A . No one is liable , since the dispute has not yet been resolved .
B . No one is liable since it's the buyer's responsibility to verify all representations ,
including title .
C . Only Sally is liable for her own actions .
D . Sally , the owner of the property , and the broker of XYZ Real Estate Company can
all be held liable for Sally's lack of disclosure - ANSWER- D . As a provisional broker ,
Sally represents not only herself , but also her firm , ( The Broker ) and the owner of the
property . All can be held liable for any misrepresentations she may make .
Correct Answers
Which of the following activities does NOT require a real estate license ?
A . Holding a real estate auction
B . Selling property listed by other brokers or agencies
C . Showing and selling one's own property
D . Offering to buy properties on behalf of third parties - ANSWER- C . Buying or sell
properties for one's own benefit or for the benefit of a family member generally does not
require a license . However , only licensed professionals may engage in transactions on
behalf of third parties . Additionally , brokers or provisional brokers selling their own
properties must disclose that fact to the public .
In addition to selling one's own property , which of the following is also exempt from
normal licensing requirements ?
A . Acting as a guardian .
B . Acting as a trustee .
C . Acting as an attorney - in - fact .
D . Each of the above - ANSWER- D . Although often limited in scope ( such as the
authority to negotiate tax matters or conduct real estate transactions ) , someone
performing any of these duties " becomes " the person he or she is representing . No
license is required because that person is now acting , in effect , on his or her own
behalf .
As long as it is specified as part of his or her duties , is it legal for an unlicensed salaried
assistant to solicit listings for the broker ?
A . Yes , if it is part of a written job description .
B . No , soliciting listings is the exclusive responsibility of the broker - in - charge .
C . Yes , because she is being paid a salary , not commissions .
D . No , active participation in real estate transactions requires a license - ANSWER- D .
Tasks such as answering phones or making copies are considered support and don't
require any licensing or course work . However , activities such as soliciting listings or
providing information about a property are part of the transaction process and may be
handled only by licensed real estate professionals .
Regarding the North Carolina Real Estate Commission , which of these statements is
true ?
,A . A monthly salary plus expenses is paid to each member .
B . The North Carolina Association of Realtors ® appoints the members .
C . The governor appoints members for a three - year term .
D . The Commission consists of seven members , all of whom must be active in real
estate - ANSWER- C . The governor appoints members to the Commission .
Additionally , there are nine , not seven members and , although at least three must be
active in real estate , there also must be at least two non - licensed " public members . "
Which of these is a requirement to hold a real estate license in North Carolina ? 1 ) Be a
resident in good standing of the state . 2 ) Be at least 21 years old .
A . Only # 1 .
B . Only # 2 .
C . Neither # 1 nor # 2 .
D . Both # 1 and # 2 - ANSWER- C . In North Carolina , the minimum age requirement
is 18 , not 21 . In addition to course - work and exam requirements , one must also be of
good character , though not a " resident in good standing . "
Licensees must notify the Real Estate Commission when which of these events occur ?
A . There is a significant change in sales volume .
B . The business tradename has changed within the past ten days .
C . The business trade - name has changed within the past thirty days .
D . The licensee has received more than two traffic violations within the past eighteen
months - ANSWER- B . Licensees have ten days in which to notify the Commission of
any change in their business name , trade - name or address .
What is the first point at which a person may begin practicing real estate in North
Carolina ?
A . When a broker activates his or her license .
B . Upon successful completion of all course and exam work .
C . Upon completion of all education requirements .
D . Upon completion of course work requirements , successfully pass the exam and
finish a recognized training program - ANSWER- A . In effect , obtaining a provisional
brokers license means that a person is now eligible to be hired by a broker . Only
,provisional brokers operating under the direct supervision of a broker may actually sell
real estate .
Which of these is required to be a broker - in - charge ? 1 ) An active broker's license for
the state of North Carolina . 2 ) Eight hours of continuing education each year .
A . Only # 1 .
B . Only # 2 .
C . Neither # 1 nor # 2 .
D . Both # 1 and # 2 - ANSWER- D . Unlike some other states , North Carolina requires
Brokers - in - Charge to complete continuing education requirements every year in
addition to holding an active broker's license . In addition , beginning July 1 , 2006 , all
brokers - in - charge must complete a four classroom hour Broker - in - Charge Annual
Review Course each full license period after being designated a broker - in - charge .
This will count as their elective course for the license period . The broker - in - charge
must also complete the Real Estate Update continuing education course each license
period as well .
What is " first substantial contact ? "
A . An initial meeting to formalize a client - agency relationship .
B . A flexible standard for establishing client - agency relationships .
C . A new agent's first listing agreement or sales contract .
D . The point at which buyers or sellers must be given the North Carolina consumers '
real estate disclosure document - ANSWER- D . Although answers 1 and 2 answer are
both partially correct , the real purpose of " first substantial contact " is to give
prospective clients the information they need to fully understand the roles ,
responsibilities and loyalties of real estate agents in different kinds of relationships .
This information must be provided before any client - agency agreements are presented
.
What is the definition of " dual agency " in North Carolina ?
A . One firm represents both the buyer and the seller equally .
B . One firm represents the seller and another represents the buyer in the same
transaction .
C . One firm represents both the buyer and the seller , but owes primary loyalty to seller
.
D . One firm represents both the buyer and the seller , but owes primary loyalty to the
buyer - ANSWER- A . Dual agency is legal in North Carolina , but requires a written
, agreement signed by all parties that includes compensation details . Further , licensees
must represent the interests both parties in the transaction equally .
What is " designated agency " in North Carolina ?
A . An alternative to dual agency .
B . A form of dual agency .
C . A minimum standard for client representation .
D . A form of representation that every company in NC must practice - ANSWER- B .
Designated agency occurs when firms that practice dual agency assign one agent to the
seller and another to the buyer in an effort to better represent the interests of each party
.
Who may practice designated agency ?
A . Only one firm representing the buyer and seller in the same transaction .
B . Only two firms involved in the same transaction .
C . Only brokers .
D . Designated agency can be practiced by firms who do not practice dual agency in
North Carolina - ANSWER- A . By definition , designated agency occurs only when one
firm represents both buyer and seller in the same transaction . Further , only firms that
practice dual agency have the option of designated agency and it is the broker - in -
charge who makes the decision .
Sally Lennox , a provisional broker working under the guidance of XYZ Real Estate
Company , and with the owner's knowledge , deliberately fails to disclose that there is a
dispute regarding title to the property . Who , if anyone , is liable in this situation ?
A . No one is liable , since the dispute has not yet been resolved .
B . No one is liable since it's the buyer's responsibility to verify all representations ,
including title .
C . Only Sally is liable for her own actions .
D . Sally , the owner of the property , and the broker of XYZ Real Estate Company can
all be held liable for Sally's lack of disclosure - ANSWER- D . As a provisional broker ,
Sally represents not only herself , but also her firm , ( The Broker ) and the owner of the
property . All can be held liable for any misrepresentations she may make .
