REAL ESTATE U FINAL EXAM AND FINAL
PRACTICE EXAM QUESTIONS AND DETAILED
ANSWERS|ALREADY GRADED A+
R
Mary is a salaried assistant of broker bob. She makes $500 per week. Mary schedules and shows
apartment units for rent to potential tenants in a building that bob manages. Is Mary required
to have a license? - CORRECT ANSWER>>No
Mark is a NC real estate broker who is looking to sell his own home. Mark doesn't have time to
show the property to all prospective buyers, so he asks his assistant Jane to manage the
showings. Jane does not have a license and is a salaried employee of Mark. Is Jane required to
have a license? - CORRECT ANSWER>>No
A real estate license in NC is NOT required for which of the following. - CORRECT ANSWER>>A
firm selling its own property through the actions of its own employees.
John is a licensed real estate broker in NC who is managing an apartment complex. He runs a
new promotion to attract new customers. Which of the following would NOT be allowed? -
CORRECT ANSWER>>A free months rent to any current tenants who recommend a friend that
signs a one-year lease.
Is an unlicensed salaried assistant of a real estate broker allowed to solicit listings for their
brokers? - CORRECT ANSWER>>It is not legal for the unlicensed assistant to solicit listings for
her broker.
Joan finds out that her best friend is interested in purchasing a new home and puts her friend
into contact with an active real estate broker named Paula who will represent the friend in the
purchase. Upon closing, Paula sends Joan a $200 Amazon gift card. Is Joan required to have a
license in order to receive the gift card? - CORRECT ANSWER>>Yes
Betsy buyer is in the market to purchase a new house. She has decided that she will not be
represented by a licensed buyers agent but wishes instead to be paid the buyers agent
commission on the house she is buying from seller sam. Does this require Betsy to be license? -
CORRECT ANSWER>>No
Teddy is an on site employee of Durham builders who is paid $75,000 annually and routinely
meets with potential buyers to show them homes, help them select floor plans, choose options,
and prepare purchase agreements. Is Teddy required to have a real estate license? - CORRECT
ANSWER>>No
Broker Betsy owns three real estate offices in town. Which of the following is correct? -
CORRECT ANSWER>>Each must have its own broker in charge.
A broker-in-charge may represent both the buyer and seller in the purchase and sale of a
property that if: - CORRECT ANSWER>>Both parties agree in writing.
The North Carolina Real Estate Commission has the authority to: - CORRECT ANSWER>>Fine a
developer whose agent violates the North Carolina Time-Share Act.
Who may legally work at two different real estate firms for compensation in North Carolina? -
CORRECT ANSWER>>A Non-provisional broker may work at two separate firms if he or she has
written consent of each firm.
A licensee must notify the North Carolina Real Estate Commission: - CORRECT
ANSWER>>Within 10 days of a change of his residence address.
Which of the following is correct in regards to the practice of designated agency? - CORRECT
ANSWER>>A broker-in-charge can practice designated agency with a provisional broker that is
associated with another branch office of the firm.
Larry agent has reviewed the Working with Real Estate Agents brochure with his buyer. The
buyer verbally agrees to have Larry show him some houses as a buyer agent. Larry has located a
house listed with his firm that the buyer wants to purchase. At the same time the offer to
purchase was prepared, Larry and his buyer also entered into a written buyer agency agreement
allowing for both dual and designated agency. Which of the following is true? - CORRECT
ANSWER>>Larry should have entered into a verbal Dual Agency Agreement before showing the
, listing to the buyer.
Buyer Bob is visiting an open house held by Homes Reality. He tours the house but decides this
is not the house for him. Which of the following statements is correct regarding the situation? -
CORRECT ANSWER>>First substantial contact never occurred and no further agency disclosure
was required.
After discussing with the buyer, including the preparation of the Working with Real Estate
Agents brochure, the broker has agreed to serve in the capacity of a buyer agent. The agent
must have the buyer sign a written buyer Agency agreement by what specific point in time? -
CORRECT ANSWER>>At the time the broker will will present an offer on the buyers behalf.
How many days does a provisional broker licensee have to deposit earnest deposits into the
trust account? - CORRECT ANSWER>>None
Which of the following is NOT true in order to place trust monies in an interest-bearing
account? - CORRECT ANSWER>>The trust account Must be located in a bank that is physically
located in NC.
A buyer makes a written offer to purchase a property and includes a $2,500 Ernest money
deposit. The seller makes a counteroffer for more money. The buyer verbally accepts. The listing
agent deposits the money in the trust account at this point in time. When the buyer receives
the sellers counteroffer, he refuses to sign even though he verbally agreed earlier. The seller is
angry and tells the buyer that he will not return the Ernest deposit since the buyer has revenged
on his word. In fact, the seller demands that the listening agent give him the deposit. What
must the real estate agent do regarding the Ernest money in this situation? - CORRECT
ANSWER>>He must retain the deposit in the trust account until he obtains written permission
from the buyer and seller or await a court order.
Dan is real estate broker in NC who is holding $8,000 Ernest money deposit for a sales
transaction seller Sam and buyer bob. Buyer Bob has breached the sales contract, and the
contract specifies that in the event of a breach, the Ernest money should be released to the
seller. Seller Sam wants the Ernest money to be released to him, as per the terms of the
contract. What should Dan do? - CORRECT ANSWER>>Hold on to the Ernest money until both
Seller Sam and Buyer Bob agree to release the Ernest money.
A listing broker advised a prospective buyer that the property the buyer was considering was
scheduled for annexation into the city limits. This discloser constituted which of the following? -
CORRECT ANSWER>>Required discloser of a material fact to the buyer.
While a broker was inspecting a property for listing, the property owner told the broker the
house contained 2,400 square feet of heated living area. Relying on this info, the broker listed
the property and represented it to prospective buyers as containing 2,400 square feet. After
purchasing the property, the buyer accurately determined that they were only 1,850 square feet
and sued for damages for the difference in value between 2,400 square feet and 1,850 square
feet. Which of the following is correct? - CORRECT ANSWER>>Both the Broker and seller are
liable.
A broker deposited a buyers check for $6,000 Ernest money in her escrow account. Prior to the
closing and at the sellers written request, the broker paid $1,200 from the escrow account for
repairs for damage cause by termites in the house. This expense was necessary so the seller
could provide the required repairs the buyer had requested resulting from his home inspection.
Which of the following statements about this transaction is correct? - CORRECT ANSWER>>The
broker acted improperly since both the buyers and sellers consent is needed to disburse any
escrow funds before the transaction is closed.
The right to occupy a property for five or more periods of time involving five or more years is
considered a: - CORRECT ANSWER>>A time share
Funds paid to a time-share developer: - CORRECT ANSWER>>Belong to the buyer 10 days from
the date of contract.
A provisional broker licensee on active status has just taken continuing education classes for the
first time. These classes were taken before the deadline for completion. He took the BICUP
course and one elective. What will be his license status as of July 1? - CORRECT
ANSWER>>Inactive
A broker licensee on provisional status has just been hired by a local lender to assist them in the
preparation of a CMA/BPO. The lender is asking for this assistance in order to help them
understand how much the property might be sold for so they can better set the limits for the
PRACTICE EXAM QUESTIONS AND DETAILED
ANSWERS|ALREADY GRADED A+
R
Mary is a salaried assistant of broker bob. She makes $500 per week. Mary schedules and shows
apartment units for rent to potential tenants in a building that bob manages. Is Mary required
to have a license? - CORRECT ANSWER>>No
Mark is a NC real estate broker who is looking to sell his own home. Mark doesn't have time to
show the property to all prospective buyers, so he asks his assistant Jane to manage the
showings. Jane does not have a license and is a salaried employee of Mark. Is Jane required to
have a license? - CORRECT ANSWER>>No
A real estate license in NC is NOT required for which of the following. - CORRECT ANSWER>>A
firm selling its own property through the actions of its own employees.
John is a licensed real estate broker in NC who is managing an apartment complex. He runs a
new promotion to attract new customers. Which of the following would NOT be allowed? -
CORRECT ANSWER>>A free months rent to any current tenants who recommend a friend that
signs a one-year lease.
Is an unlicensed salaried assistant of a real estate broker allowed to solicit listings for their
brokers? - CORRECT ANSWER>>It is not legal for the unlicensed assistant to solicit listings for
her broker.
Joan finds out that her best friend is interested in purchasing a new home and puts her friend
into contact with an active real estate broker named Paula who will represent the friend in the
purchase. Upon closing, Paula sends Joan a $200 Amazon gift card. Is Joan required to have a
license in order to receive the gift card? - CORRECT ANSWER>>Yes
Betsy buyer is in the market to purchase a new house. She has decided that she will not be
represented by a licensed buyers agent but wishes instead to be paid the buyers agent
commission on the house she is buying from seller sam. Does this require Betsy to be license? -
CORRECT ANSWER>>No
Teddy is an on site employee of Durham builders who is paid $75,000 annually and routinely
meets with potential buyers to show them homes, help them select floor plans, choose options,
and prepare purchase agreements. Is Teddy required to have a real estate license? - CORRECT
ANSWER>>No
Broker Betsy owns three real estate offices in town. Which of the following is correct? -
CORRECT ANSWER>>Each must have its own broker in charge.
A broker-in-charge may represent both the buyer and seller in the purchase and sale of a
property that if: - CORRECT ANSWER>>Both parties agree in writing.
The North Carolina Real Estate Commission has the authority to: - CORRECT ANSWER>>Fine a
developer whose agent violates the North Carolina Time-Share Act.
Who may legally work at two different real estate firms for compensation in North Carolina? -
CORRECT ANSWER>>A Non-provisional broker may work at two separate firms if he or she has
written consent of each firm.
A licensee must notify the North Carolina Real Estate Commission: - CORRECT
ANSWER>>Within 10 days of a change of his residence address.
Which of the following is correct in regards to the practice of designated agency? - CORRECT
ANSWER>>A broker-in-charge can practice designated agency with a provisional broker that is
associated with another branch office of the firm.
Larry agent has reviewed the Working with Real Estate Agents brochure with his buyer. The
buyer verbally agrees to have Larry show him some houses as a buyer agent. Larry has located a
house listed with his firm that the buyer wants to purchase. At the same time the offer to
purchase was prepared, Larry and his buyer also entered into a written buyer agency agreement
allowing for both dual and designated agency. Which of the following is true? - CORRECT
ANSWER>>Larry should have entered into a verbal Dual Agency Agreement before showing the
, listing to the buyer.
Buyer Bob is visiting an open house held by Homes Reality. He tours the house but decides this
is not the house for him. Which of the following statements is correct regarding the situation? -
CORRECT ANSWER>>First substantial contact never occurred and no further agency disclosure
was required.
After discussing with the buyer, including the preparation of the Working with Real Estate
Agents brochure, the broker has agreed to serve in the capacity of a buyer agent. The agent
must have the buyer sign a written buyer Agency agreement by what specific point in time? -
CORRECT ANSWER>>At the time the broker will will present an offer on the buyers behalf.
How many days does a provisional broker licensee have to deposit earnest deposits into the
trust account? - CORRECT ANSWER>>None
Which of the following is NOT true in order to place trust monies in an interest-bearing
account? - CORRECT ANSWER>>The trust account Must be located in a bank that is physically
located in NC.
A buyer makes a written offer to purchase a property and includes a $2,500 Ernest money
deposit. The seller makes a counteroffer for more money. The buyer verbally accepts. The listing
agent deposits the money in the trust account at this point in time. When the buyer receives
the sellers counteroffer, he refuses to sign even though he verbally agreed earlier. The seller is
angry and tells the buyer that he will not return the Ernest deposit since the buyer has revenged
on his word. In fact, the seller demands that the listening agent give him the deposit. What
must the real estate agent do regarding the Ernest money in this situation? - CORRECT
ANSWER>>He must retain the deposit in the trust account until he obtains written permission
from the buyer and seller or await a court order.
Dan is real estate broker in NC who is holding $8,000 Ernest money deposit for a sales
transaction seller Sam and buyer bob. Buyer Bob has breached the sales contract, and the
contract specifies that in the event of a breach, the Ernest money should be released to the
seller. Seller Sam wants the Ernest money to be released to him, as per the terms of the
contract. What should Dan do? - CORRECT ANSWER>>Hold on to the Ernest money until both
Seller Sam and Buyer Bob agree to release the Ernest money.
A listing broker advised a prospective buyer that the property the buyer was considering was
scheduled for annexation into the city limits. This discloser constituted which of the following? -
CORRECT ANSWER>>Required discloser of a material fact to the buyer.
While a broker was inspecting a property for listing, the property owner told the broker the
house contained 2,400 square feet of heated living area. Relying on this info, the broker listed
the property and represented it to prospective buyers as containing 2,400 square feet. After
purchasing the property, the buyer accurately determined that they were only 1,850 square feet
and sued for damages for the difference in value between 2,400 square feet and 1,850 square
feet. Which of the following is correct? - CORRECT ANSWER>>Both the Broker and seller are
liable.
A broker deposited a buyers check for $6,000 Ernest money in her escrow account. Prior to the
closing and at the sellers written request, the broker paid $1,200 from the escrow account for
repairs for damage cause by termites in the house. This expense was necessary so the seller
could provide the required repairs the buyer had requested resulting from his home inspection.
Which of the following statements about this transaction is correct? - CORRECT ANSWER>>The
broker acted improperly since both the buyers and sellers consent is needed to disburse any
escrow funds before the transaction is closed.
The right to occupy a property for five or more periods of time involving five or more years is
considered a: - CORRECT ANSWER>>A time share
Funds paid to a time-share developer: - CORRECT ANSWER>>Belong to the buyer 10 days from
the date of contract.
A provisional broker licensee on active status has just taken continuing education classes for the
first time. These classes were taken before the deadline for completion. He took the BICUP
course and one elective. What will be his license status as of July 1? - CORRECT
ANSWER>>Inactive
A broker licensee on provisional status has just been hired by a local lender to assist them in the
preparation of a CMA/BPO. The lender is asking for this assistance in order to help them
understand how much the property might be sold for so they can better set the limits for the
