NC STATE SECTION EXAM QUESTIONS
WITH 100% CORRECT ANSWERS
When a real estate broker has agreed with a seller to only represent the seller, that
broker - ANSWER- could work with a buyer as a sub agent in this transaction
If a contract was written upon the standard form NCBA/NCAR 2 T offer to purchase
form, the excise tax would show on a closing statement as a - ANSWER- debit to the
seller
Mr. Jones, a Realtor with XYZ Realty showed Mr. Smith's listing. Mr. Smith is with ABC
Realty. Mr. Jones asked Mr. Smith to deliver a Residential Property and Owner's
Association Disclosure. Mr. Smith told Mr. Jones that the seller refused to fill out the
form. Two days later, the buyer notified Mr. Jones and Mr. Smith that he was backing
out on the deal. He demanded a refund of his earnest money deposit and his due
diligence fee. Which of the following is true? - ANSWER- All money must be returned
An agent has a duty to - ANSWER- obey all legal instructions of his client
In order to be a broker in charge, a person must - ANSWER- A. have two years of full
time or part time real estate brokerage experience within the previous five years
B. complete a twelve hour course.
C. take a broker in charge update class every year in addition to a 4 hour elective
continuing education class
The relationship between buyer and seller in North Carolina is - ANSWER- caveat
emptor
When Sally Jones bought her brand new condominium from Mr. Developer three years
ago, she had seven days to rescind her contract for no reason. If Sally sells her
condominium to a new buyer today, how long will Sally's buyer have to rescind the
contract? - ANSWER- There is no right of rescission with a resale condominium
Which of the following statements are true? - ANSWER- A. The square footage of a
residential house is NOT a material fact
John,a South Carolina real estate broker was showing some clients some rental units in
Landrum, South Carolina. They expressed an interest in a motel that was just across
the state line in Tryon, North Carolina. The South Carolina broker called his friend, a
Realtor in Tryon, North Carolina. They agreed to meet at the liquor store on the South
Carolina side of the state line. They met. John introduced his clients to the North
Carolina Realtor. John and the North Carolina Realtor agreed to split any commission
earned fifty fifty. The North Carolina Realtor did not sell the motel to the new clients. He
took them over to the other side of town and sold them a twelve unit rental property.
, When they got back to the liquor store, John was sitting on the front porch smoking a
cigar. Which of following is true? - ANSWER- John is entitled to half the commission on
the twelve unit building
Which of the following properties would not require a Residential and Owners
Association Disclosure Statement from the seller - ANSWER- A sixty acre apple orchard
The lowest horizontal member of the house frame which rests atop the foundation wall
and forms a base for the studs is the - ANSWER- Footer
Provisional brokers can be paid by ... - ANSWER- their broker in charge
If a buyer does not receive the mandatory Mineral, Oil and Gas Mandatory Disclosure
Statement before signing a a NCBA/NCAR 2-T contract - ANSWER- This contract is
voidable at the whim of the buyer for three calendar days.
North Carolina Leaking Petroleum Underground Storage Tank Clean Up Act requires -
ANSWER- property owners to remove leaking underground storage tanks
an agent would give advice and counsel to a - ANSWER- client
Susan, a real estate broker, accepted a cash deposit for earnest money with an offer
from a buyer. When must this money be deposited in the bank? - ANSWER- within
three banking days of receipt of the cash
Most counties in North Carolina adjust their tax rate every...... - ANSWER- one year
According to the T-2 standard OPC contract form used in North Carolina, in which of the
following is "time of the essence" ? - ANSWER- notification of buyer's option to
terminate
Joe passed his state exam on May 12, 2017. He was so tired of real estate school that
he vowed not to return to real estate school until absolutely necessary. When would that
be? - ANSWER- He would have to complete a 30 hour post license real estate class
before May 11, 2018. If he does not his license will revert to inactive status
Andrew, a Realtor working at ABC Realty, is working with a very picky buyer, the Jones,
This buyer has signed the agency agreement and given ABC Realty the option to act as
a dual agent. Andrew has shown the Jones 54 houses. They are all too expensive or
too small or too chopped up or too open or too old or too far away . Finally Andrew finds
the perfect house for the Jones. It is listed with ABC Realty. The seller has given ABC
permission to act as a dual agent. Andrew shows the house to his clients , the Jones.
Robert, also a broker at ABC Realty, works with the sellers. Which of following is
correct? - ANSWER- ABC Realty is a dual agent
WITH 100% CORRECT ANSWERS
When a real estate broker has agreed with a seller to only represent the seller, that
broker - ANSWER- could work with a buyer as a sub agent in this transaction
If a contract was written upon the standard form NCBA/NCAR 2 T offer to purchase
form, the excise tax would show on a closing statement as a - ANSWER- debit to the
seller
Mr. Jones, a Realtor with XYZ Realty showed Mr. Smith's listing. Mr. Smith is with ABC
Realty. Mr. Jones asked Mr. Smith to deliver a Residential Property and Owner's
Association Disclosure. Mr. Smith told Mr. Jones that the seller refused to fill out the
form. Two days later, the buyer notified Mr. Jones and Mr. Smith that he was backing
out on the deal. He demanded a refund of his earnest money deposit and his due
diligence fee. Which of the following is true? - ANSWER- All money must be returned
An agent has a duty to - ANSWER- obey all legal instructions of his client
In order to be a broker in charge, a person must - ANSWER- A. have two years of full
time or part time real estate brokerage experience within the previous five years
B. complete a twelve hour course.
C. take a broker in charge update class every year in addition to a 4 hour elective
continuing education class
The relationship between buyer and seller in North Carolina is - ANSWER- caveat
emptor
When Sally Jones bought her brand new condominium from Mr. Developer three years
ago, she had seven days to rescind her contract for no reason. If Sally sells her
condominium to a new buyer today, how long will Sally's buyer have to rescind the
contract? - ANSWER- There is no right of rescission with a resale condominium
Which of the following statements are true? - ANSWER- A. The square footage of a
residential house is NOT a material fact
John,a South Carolina real estate broker was showing some clients some rental units in
Landrum, South Carolina. They expressed an interest in a motel that was just across
the state line in Tryon, North Carolina. The South Carolina broker called his friend, a
Realtor in Tryon, North Carolina. They agreed to meet at the liquor store on the South
Carolina side of the state line. They met. John introduced his clients to the North
Carolina Realtor. John and the North Carolina Realtor agreed to split any commission
earned fifty fifty. The North Carolina Realtor did not sell the motel to the new clients. He
took them over to the other side of town and sold them a twelve unit rental property.
, When they got back to the liquor store, John was sitting on the front porch smoking a
cigar. Which of following is true? - ANSWER- John is entitled to half the commission on
the twelve unit building
Which of the following properties would not require a Residential and Owners
Association Disclosure Statement from the seller - ANSWER- A sixty acre apple orchard
The lowest horizontal member of the house frame which rests atop the foundation wall
and forms a base for the studs is the - ANSWER- Footer
Provisional brokers can be paid by ... - ANSWER- their broker in charge
If a buyer does not receive the mandatory Mineral, Oil and Gas Mandatory Disclosure
Statement before signing a a NCBA/NCAR 2-T contract - ANSWER- This contract is
voidable at the whim of the buyer for three calendar days.
North Carolina Leaking Petroleum Underground Storage Tank Clean Up Act requires -
ANSWER- property owners to remove leaking underground storage tanks
an agent would give advice and counsel to a - ANSWER- client
Susan, a real estate broker, accepted a cash deposit for earnest money with an offer
from a buyer. When must this money be deposited in the bank? - ANSWER- within
three banking days of receipt of the cash
Most counties in North Carolina adjust their tax rate every...... - ANSWER- one year
According to the T-2 standard OPC contract form used in North Carolina, in which of the
following is "time of the essence" ? - ANSWER- notification of buyer's option to
terminate
Joe passed his state exam on May 12, 2017. He was so tired of real estate school that
he vowed not to return to real estate school until absolutely necessary. When would that
be? - ANSWER- He would have to complete a 30 hour post license real estate class
before May 11, 2018. If he does not his license will revert to inactive status
Andrew, a Realtor working at ABC Realty, is working with a very picky buyer, the Jones,
This buyer has signed the agency agreement and given ABC Realty the option to act as
a dual agent. Andrew has shown the Jones 54 houses. They are all too expensive or
too small or too chopped up or too open or too old or too far away . Finally Andrew finds
the perfect house for the Jones. It is listed with ABC Realty. The seller has given ABC
permission to act as a dual agent. Andrew shows the house to his clients , the Jones.
Robert, also a broker at ABC Realty, works with the sellers. Which of following is
correct? - ANSWER- ABC Realty is a dual agent
