NORTH CAROLINA REAL ESTATE
(STATE ONLY EXAM REVIEW)
QUESTIONS AND ANSWERS
Which pof pthe pfollowing pstatements pis ptrue pregarding pAd pValorem ptaxation pin
pNorth pCarolina?
1. pReal pproperty pis ptaxed paccording pto pits pmost precent psale pprice. p
2. pThe pMachinery pAct prequires preassessment ptax ppurposes pevery p4 pyears.
3. pReal pproperty ptaxes pand pspecial passessments pconstitute pan pinvoluntary plien
pagainst pproperty pon pJanuary p1st pof pthe pnext pyear.
4. pTax prates pare peffective puntil pthe pnext prevaluation pyear. p- pcorrect panswers p-3.
pReal pproperty ptaxes pand pspecial passessments pconstitute pan pinvoluntary plien
pagainst pproperty pon pJanuary p1st pof pthe ptext pyear
Explanation
Real pproperty pis ptaxed paccording pto pits passessed pvalue, pnot psale pprice. pThe
pMachinery pAct prequires pthat pproperties pbe passessed pat pleast ponce pevery p8
,pyears p(octennial pappraisal). pTax prates pcan pbe pchanged pevery pyear pand pnot pset
pby pthe pMachinery pAct, prather pby pbudget pof pthe pmunicipality.
John precently pretired pand pmoved pto pa pcoastal pcommunity plocated pin pNorth
pCarolina. pHe pdecided pto pseek popportunities pto psupplement phis pretirement
pincome pby presponding pto pan padvertisement pto pbecome pa ptimeshare psalesman.
pJohn pis ptold pby pthe pdeveloper pno plicense pis prequired pto psell pa ptimeshare pas
phe pwill pbe ppaid pa pflat pfee pfor peach ptimeshare psold pis pthe pdeveloper pcorrect?
1. pNo. pIn porder pto psell ptime pshares pan pindividual pwill pneed pto pobtain pa
ptimeshare psales plicense.
2. pNo. pIn porder pto psell ptimeshares pan pindividual pwill pneed pto pobtain pa pNorth
pCarolina preal pestate plicense.
3. pYes. pSo plong pas pan pindividual pis pnot ppaid pa ppercentage pbased pcommission
pthere pis pno prequirement pto pobtain pa ptime pshare psalesman plicense.
4. pYes. pTimeshare psales pfall punder pvacation pproperty psales pand ptherefore pare
pexempt pfrom pthe ptypical plicensing prequirements. p- pcorrect panswers p-2. pNo. pIn
porder pto psell ptimeshares pan pindividual pwill pneed pto pobtain pa pNorth pCarolina preal
pestate plicense.
Explanation
The plicense ptriggering pevent pis pearning pcompensation pon pbehalf pof panother.
pJohn pwill prequire pan pactive preal pestate plicense pin porder pto pearn pcompensation
pfrom pthe psale pof ptimeshare pproperties.
Which pof pthe pfollowing pstatements pregarding preal pestate psales pcontract pis ptrue?
1. pA pprovisional pbroker pacting pas pthe pseller's pagent pis prequired pto psafeguard pan
poption pmoney pcheck puntil peffective pand pthey pmust pdeliver pit pdirectly pto pthe
pseller.
2. pAn pagent prepresenting pa pbuyer pmust psubmit pan poffer pto ppurchase pto pthe
pseller por psellers pagent pimmediately por pno plater pthan p7 pdays.
3. pWhen pearnest pmoney pis ppaid pwith pan peffective pcontract pit pmust pbe pdeposited
pwithin p5 pbanking pdays pof preceipt.
4. pA pbroker pis pnot ppermitted pto paccept pan pearnest pmoney pdeposit pif pit pis
ptender pin pcash. p- pcorrect panswers p-1. pOption pfee pand pdue pdiligence pfee pchecks
pare pmade ppayable pto pthe pseller pand pdelivered ponce pthe pcontract pbecomes
peffective. pOffers pand pcontracts pmust pbe pdelivered pwithin pfive pdays. pEarnest
pmoney pmust pbe pdeposited pthe plater pof pthree pbanking pdays pfrom pthe peffective
pdate pof pthe pcontract por preceipt. pWhile pit pis pnot precommended pthat pa pbroker
paccept pcash, pit pis ppermitted. pWhen pcash pis ptendered pfor pearnest pmoney por
pdue pdiligence, pit pmust pbe pdeposited pimmediately pbut pno plater pthan pthree
pbanking pdays.
Explanation
, Option pfee pand pdue pdiligence pfee pchecks pare pmade ppayable pto pthe pseller pand
pdelivered ponce pthe pcontract pbecomes peffective. pOffers pand pcontracts pmut pbe
pdelivered pwithin p5 pdays. pEarnest pmoney pmust pbe pdeposited pthe plater pof p3
pbanking pdays pfrom pthe peffective pdate pof pthe pcontract por preceipt. pWhile pit pis pnot
precommended pthat pa pbroker paccept pcash, pit pis ppermitted. pWhen pcash pis
ptendered pfor pearnest pmoney pr pdue pdiligence, pit pmust pbe pdeposited pimmediately
pbut pno plater pthan p3 pbanking pdays.
All pof pthe pfollowing pstatements pare ptrue pregarding pa pbroker-in-charge, pEXCEPT: p
1. pA pbrokerage poperating pas pa psole pproprietorship pmust pappoint pa pbroker-in-
charge pin porder pto phandle ptrust pfunds pand padvertise pproperty. p
2. pA pbroker-in-charge pmust pnotify pthe pCommission pwhen pa pchange pin phis por
pher pstatus poccurs. p
3. pA pbroker-in-charge pis presponsible pfor pmaintaining ptransaction precords pand
pnotification pof pa pchange pin paddress pof pthe pfirm pto pthe pCommission. p
4. pA pbroker-in-charge phas pa pduty pto psupervise pall pbrokers paffiliated pwith pthe
pfirm pwith pregard pto pviolations pof plicense plaw. p- pcorrect panswers p-4. pA pbroker-in-
charge phas pa pduty pto psupervise pall pbrokers paffiliated pwith pthe pfirm pwith pregard
pto pviolations pof plicense plaw.
Explanation
A pbroker-in-charge pmust pdirectly psupervise pprovisional pbrokers. pWhile pthey pare
presponsible pto pensure pcompliance pwith pagency pdisclosure pand padherence pto pfair
phousing pthey pare pnot presponsible pfor pall pviolations pof plicense plaw pfor pa pbroker.
A pbuyer's pagent pis presponsible pfor pwhich pof pthe pfollowing pin pregard pto pthe
pClosing pDisclosure? p
1. pThe paccuracy pof pall pitems pon pthe pClosing pDisclosure. p
2. pThe paccuracy pof pall pitems pthe pbuyer pwhich pthey pare preasonably paware. p
3. pThe pcorrect pdistribution pof pproceeds pof psale p
4. pTo pensure pthat pbuyer phas ptitle pinsurance pcoverage. p- pcorrect panswers p-2.
pThe paccuracy pof pall pitems pthe pbuyer pwhich pthey pare preasonably paware.
Explanation
Accuracy pof pall pitems pfor pthe pbuyer pof pwhich phe phas pknowledge. pThe pagent
pwould pnot pbe presponsible pfor pcalculating pthe pseller ppayoff por paggregate
paccounting padjustments p(set pby pRESPA).
A presidential ptenant pin pNorth pCarolina pcomplains pof pa pdefect pwith pthe pheating
psystem pand phis punit pis pheating psystem pis pnot pworking pand pthe pFebruary
(STATE ONLY EXAM REVIEW)
QUESTIONS AND ANSWERS
Which pof pthe pfollowing pstatements pis ptrue pregarding pAd pValorem ptaxation pin
pNorth pCarolina?
1. pReal pproperty pis ptaxed paccording pto pits pmost precent psale pprice. p
2. pThe pMachinery pAct prequires preassessment ptax ppurposes pevery p4 pyears.
3. pReal pproperty ptaxes pand pspecial passessments pconstitute pan pinvoluntary plien
pagainst pproperty pon pJanuary p1st pof pthe pnext pyear.
4. pTax prates pare peffective puntil pthe pnext prevaluation pyear. p- pcorrect panswers p-3.
pReal pproperty ptaxes pand pspecial passessments pconstitute pan pinvoluntary plien
pagainst pproperty pon pJanuary p1st pof pthe ptext pyear
Explanation
Real pproperty pis ptaxed paccording pto pits passessed pvalue, pnot psale pprice. pThe
pMachinery pAct prequires pthat pproperties pbe passessed pat pleast ponce pevery p8
,pyears p(octennial pappraisal). pTax prates pcan pbe pchanged pevery pyear pand pnot pset
pby pthe pMachinery pAct, prather pby pbudget pof pthe pmunicipality.
John precently pretired pand pmoved pto pa pcoastal pcommunity plocated pin pNorth
pCarolina. pHe pdecided pto pseek popportunities pto psupplement phis pretirement
pincome pby presponding pto pan padvertisement pto pbecome pa ptimeshare psalesman.
pJohn pis ptold pby pthe pdeveloper pno plicense pis prequired pto psell pa ptimeshare pas
phe pwill pbe ppaid pa pflat pfee pfor peach ptimeshare psold pis pthe pdeveloper pcorrect?
1. pNo. pIn porder pto psell ptime pshares pan pindividual pwill pneed pto pobtain pa
ptimeshare psales plicense.
2. pNo. pIn porder pto psell ptimeshares pan pindividual pwill pneed pto pobtain pa pNorth
pCarolina preal pestate plicense.
3. pYes. pSo plong pas pan pindividual pis pnot ppaid pa ppercentage pbased pcommission
pthere pis pno prequirement pto pobtain pa ptime pshare psalesman plicense.
4. pYes. pTimeshare psales pfall punder pvacation pproperty psales pand ptherefore pare
pexempt pfrom pthe ptypical plicensing prequirements. p- pcorrect panswers p-2. pNo. pIn
porder pto psell ptimeshares pan pindividual pwill pneed pto pobtain pa pNorth pCarolina preal
pestate plicense.
Explanation
The plicense ptriggering pevent pis pearning pcompensation pon pbehalf pof panother.
pJohn pwill prequire pan pactive preal pestate plicense pin porder pto pearn pcompensation
pfrom pthe psale pof ptimeshare pproperties.
Which pof pthe pfollowing pstatements pregarding preal pestate psales pcontract pis ptrue?
1. pA pprovisional pbroker pacting pas pthe pseller's pagent pis prequired pto psafeguard pan
poption pmoney pcheck puntil peffective pand pthey pmust pdeliver pit pdirectly pto pthe
pseller.
2. pAn pagent prepresenting pa pbuyer pmust psubmit pan poffer pto ppurchase pto pthe
pseller por psellers pagent pimmediately por pno plater pthan p7 pdays.
3. pWhen pearnest pmoney pis ppaid pwith pan peffective pcontract pit pmust pbe pdeposited
pwithin p5 pbanking pdays pof preceipt.
4. pA pbroker pis pnot ppermitted pto paccept pan pearnest pmoney pdeposit pif pit pis
ptender pin pcash. p- pcorrect panswers p-1. pOption pfee pand pdue pdiligence pfee pchecks
pare pmade ppayable pto pthe pseller pand pdelivered ponce pthe pcontract pbecomes
peffective. pOffers pand pcontracts pmust pbe pdelivered pwithin pfive pdays. pEarnest
pmoney pmust pbe pdeposited pthe plater pof pthree pbanking pdays pfrom pthe peffective
pdate pof pthe pcontract por preceipt. pWhile pit pis pnot precommended pthat pa pbroker
paccept pcash, pit pis ppermitted. pWhen pcash pis ptendered pfor pearnest pmoney por
pdue pdiligence, pit pmust pbe pdeposited pimmediately pbut pno plater pthan pthree
pbanking pdays.
Explanation
, Option pfee pand pdue pdiligence pfee pchecks pare pmade ppayable pto pthe pseller pand
pdelivered ponce pthe pcontract pbecomes peffective. pOffers pand pcontracts pmut pbe
pdelivered pwithin p5 pdays. pEarnest pmoney pmust pbe pdeposited pthe plater pof p3
pbanking pdays pfrom pthe peffective pdate pof pthe pcontract por preceipt. pWhile pit pis pnot
precommended pthat pa pbroker paccept pcash, pit pis ppermitted. pWhen pcash pis
ptendered pfor pearnest pmoney pr pdue pdiligence, pit pmust pbe pdeposited pimmediately
pbut pno plater pthan p3 pbanking pdays.
All pof pthe pfollowing pstatements pare ptrue pregarding pa pbroker-in-charge, pEXCEPT: p
1. pA pbrokerage poperating pas pa psole pproprietorship pmust pappoint pa pbroker-in-
charge pin porder pto phandle ptrust pfunds pand padvertise pproperty. p
2. pA pbroker-in-charge pmust pnotify pthe pCommission pwhen pa pchange pin phis por
pher pstatus poccurs. p
3. pA pbroker-in-charge pis presponsible pfor pmaintaining ptransaction precords pand
pnotification pof pa pchange pin paddress pof pthe pfirm pto pthe pCommission. p
4. pA pbroker-in-charge phas pa pduty pto psupervise pall pbrokers paffiliated pwith pthe
pfirm pwith pregard pto pviolations pof plicense plaw. p- pcorrect panswers p-4. pA pbroker-in-
charge phas pa pduty pto psupervise pall pbrokers paffiliated pwith pthe pfirm pwith pregard
pto pviolations pof plicense plaw.
Explanation
A pbroker-in-charge pmust pdirectly psupervise pprovisional pbrokers. pWhile pthey pare
presponsible pto pensure pcompliance pwith pagency pdisclosure pand padherence pto pfair
phousing pthey pare pnot presponsible pfor pall pviolations pof plicense plaw pfor pa pbroker.
A pbuyer's pagent pis presponsible pfor pwhich pof pthe pfollowing pin pregard pto pthe
pClosing pDisclosure? p
1. pThe paccuracy pof pall pitems pon pthe pClosing pDisclosure. p
2. pThe paccuracy pof pall pitems pthe pbuyer pwhich pthey pare preasonably paware. p
3. pThe pcorrect pdistribution pof pproceeds pof psale p
4. pTo pensure pthat pbuyer phas ptitle pinsurance pcoverage. p- pcorrect panswers p-2.
pThe paccuracy pof pall pitems pthe pbuyer pwhich pthey pare preasonably paware.
Explanation
Accuracy pof pall pitems pfor pthe pbuyer pof pwhich phe phas pknowledge. pThe pagent
pwould pnot pbe presponsible pfor pcalculating pthe pseller ppayoff por paggregate
paccounting padjustments p(set pby pRESPA).
A presidential ptenant pin pNorth pCarolina pcomplains pof pa pdefect pwith pthe pheating
psystem pand phis punit pis pheating psystem pis pnot pworking pand pthe pFebruary
