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303 NC POST LICENSING EXAM ACTUAL
EXAM QUESTIONS AND CORRECT
ANSWERS (ALREADY GRADED A+) |
LATEST EDITION 2024 (JUST RELEASED)
North Carolina broker Karyn has accepted compensation from a vendor for recommending its services to a client. Under what circumstances would Karyn NOT be required to disclose her acceptance? -----CORRECT ANSWER---------------If what Karyn accepted is a token of insignificant or symbolic worth, she needn't disclose it to anyone. Which of the following terms refers to the relationship between the landlord and the tenant in which both parties have obligations to one another? -----CORRECT ANSWER- --------------Mutuality of obligations All of the following are requirements for manufactured housing EXCEPT for which one? -----CORRECT ANSWER---------------Does not include a permanently attached chassis
- Manufactured homes are transportable structures that are eight or more feet in width and 40 or more feet in length, or at least 320 square feet. They're constructed with a permanent, non-removable steel chassis and wheels, and they are designed to be used as dwellings with or without a permanent foundation when connected to plumbing, heating, cooling, and/or electrical systems. Which of the following situations would NOT require a North Carolina licensee to notify NCREC? -----CORRECT ANSWER---------------The licensee takes out a sizable personal loan to complete some office renovations. Jessica is a timeshare interest purchaser who noticed that the public offering statement includes a statement that she has a right to cancel the purchase contract within a certain number of days after executing the purchase contract. This cancellation statement is known as the purchaser's ______. -----CORRECT ANSWER--------------- Right to cancel
A North Carolina licensee has been found guilty of improper conduct. Which of the following is an example of that violation? -----CORRECT ANSWER---------------Violation of the State Fair Housing Act What advantage does the 1031 tax-deferred exchange offer? -----CORRECT ANSWER- --------------It allows investors to defer capital gains taxes when selling a property, provided they buy another property. North Carolina broker Dustin moved, changing his permanent address. To comply with real estate license law, who or what entity must Dustin notify? -----CORRECT ANSWER---------------The North Carolina Real Estate Commission Samson needs to get insurance for his new condo. What type of insurance will cover his unit and all personal property within the unit? -----CORRECT ANSWER---------------An HO6 policy BIC Sydney is planning to attend broker Alyssa's closing on July 1 because Alyssa's license became inactive on June 30. Alyssa's done all the work on this transaction but simply forgot to take her CE. Which of the following statements is true? -----CORRECT ANSWER---------------Alyssa is still entitled to the commission for performing brokerage services she earned prior to the date her license became inactive. North Carolina broker Kelly has been convicted of a misdemeanor. She has _____ days to notify NCREC. -----CORRECT ANSWER--------------- 60 North Carolina broker-in-charge Caleb has let his broker's license expire. What does that mean for his BIC status? -----CORRECT ANSWER---------------His BIC-eligible status terminates, and he'll need to start the process of gaining eligibility over again.
In North Carolina, which jurisdiction usually sets zoning regulations? -----CORRECT ANSWER---------------City Alex is a licensed broker at Burr Realty in Greensboro, North Carolina. One of his responsibilities is to notify NCREC if there are any major changes with the brokerage, like name, address, or key personnel changes. Based on this information, what position does Alex hold? -----CORRECT ANSWER---------------Qualified broker Terry is a North Carolina broker whose license was revoked nine months ago. Which of the following is NOT required for his license to be reinstated? -----CORRECT ANSWER- --------------Completing the 75-hour pre-licensing education course
- To have a revoked license reinstated, a post-licensing course is required, along with a reinstatement application, reinstatement fee, and passing the licensing exams. The pre-licensing course is NOT required of a reinstatement that's occurring fewer than two years after the revocation. Which of the following scenarios accurately represents your environmental disclosure responsibility as a real estate licensee? -----CORRECT ANSWER----------------You must disclose all known environmental hazards for both residential and commercial properties. Tenant Christina's landlord locked her out of her apartment after she filed a complaint against him with the North Carolina Civil Rights Division. Under what circumstances would state law presume that the landlord's actions were retaliatory? -----CORRECT ANSWER---------------If she complained about the landlord within the 12 months prior to him evicting her. Which of the following statements is true regarding a tenant's indemnity? -----CORRECT ANSWER---------------A tenant's indemnity is usually limited to issues on the leased premises and doesn't include claims or losses that arise from the landlord's or the landlord's agents' negligence or willful misconduct.
When it comes to preparing commercial purchase contracts, which of the following is a true statement? -----CORRECT ANSWER---------------Licensees can only use standard forms. North Carolina property manager Raquel has a tenant whose lease has expired, but who won't leave. The property owner wants Raquel to begin the eviction process. Is Raquel allowed to comply with this request? -----CORRECT ANSWER----------------Yes. The property owner or an agent, like Raquel, who's working on behalf of the property owner may initiate legal action for the eviction process. Which of the following are North Carolina agents NOT required to identify as potential areas of concern for potential buyers? -----CORRECT ANSWER---------------HVAC efficiency Rebecca is a trustee in a bankruptcy case, and is performing real estate activities under a court order as part of her trustee duties. She'll be compensated for her role in these activities. Does Rebecca need a North Carolina real estate license? -----CORRECT ANSWER----------------No. Rebecca qualifies for the exemption for persons acting under a court order, and therefore doesn't need a license Listing agents in North Carolina who use the standard NCAR agency agreement form should be sure to clearly disclose any compensation-sharing limitations if their firm restricts with whom they share brokerage fees. Why is this? -----CORRECT ANSWER--- -------------The agency agreement language gives permission to share compensation with any licensed buyer or seller agent Ben and Jerri pay $200 to their HOA every quarter. This money is likely used for all of the following EXCEPT for which one? -----CORRECT ANSWER---------------Pay off fines for HOA rule violations. A cooperative listing service, like the MLS, requires its members to cooperate. It also requires them to ______. -----CORRECT ANSWER---------------Offer compensation to the cooperating broker
Which aspect of highest and best use is concerned with land use restrictions and zoning? -----CORRECT ANSWER---------------Is it legally allowable or permissible? In North Carolina, the Vacation Rental Act provides what kind of exception regarding compensation for real estate brokerage activities? -----CORRECT ANSWER--------------- Under this act, a travel agent who does not hold an active real estate license may accept a referral fee for referring a tenant to a broker for a vacation rental if certain provisions are met. Tenant A is leasing commercial property from the landlord. Tenant A then sublets to Tenant B. Which of the following parties have a sandwich lease? -----CORRECT ANSWER---------------The original tenant and the landlord Mike relocated for work and learned that the region in which he planned to buy a home had many old underground mines. In fact, Mike might even need to purchase mine subsidence insurance. What might a home inspector flag for Mike if there are any concerns about undermining? -----CORRECT ANSWER---------------A sinkhole on the property An underground storage tank has been in place for 15 years. What is its remaining useful life, on average? -----CORRECT ANSWER---------------Zero years Which of the following is described as an area that is protected by the Clean Water Act where standing water that supports aquatic plants and animals is located and groundwater is filtered? -----CORRECT ANSWER---------------Wetland Before becoming a broker-in-charge, a North Carolina broker must first apply for _______ with the NCREC. -----CORRECT ANSWER---------------Eligibility Dave is an employee of a housing authority in his North Carolina county. He's been asked to lease one of the properties that the housing authority owns to a new tenant. Does Dave need a real estate license for this? -----CORRECT ANSWER---------------No.
Dave qualifies for the housing authority exemption wherein an employee is permitted to sell or lease properties that are owned by the housing authority. It's fine for a personal assistant to answer a buyer's questions related to contract terms if the personal assistant ______. -----CORRECT ANSWER---------------Is licensed Which of the following is NOT a measure a developer must take to prevent sedimentation? -----CORRECT ANSWER---------------Deep rooting trees along shoreline Randall's clients, Carma and Trent, are looking for a mountain cabin. They tell Randall they'll pay him a $2,000 finder's fee if he finds the cabin that checks all of their boxes, and they close on it. Randall finds a likely candidate that's an FSBO, and negotiations begin. What circumstance is required for Randall to receive the finder's fee? ----- CORRECT ANSWER---------------Carma and Trent must pay the finder's fee to Randall's broker Which of the following would NOT be considered a violation of license law? ----- CORRECT ANSWER---------------A timeshare salesperson who also has a legal license performing legal services Which of the following best describes a tenant's right to quiet enjoyment? ----- CORRECT ANSWER---------------A tenant has the right to enjoy lawful use of the property without being dispossessed or trespassed upon, even by the landlord. Ricky Nubbins is three months behind in his rent and has received several reminders from the landlord that the rent is past due. As a result, the landlord has begun working through proper channels to legally end Ricky's lease before the contract end date. The landlord is terminating his lease through ______. -----CORRECT ANSWER--------------- Eviction
and renew their licenses yearly. However, only provisional brokers must be supervised by a broker-in-charge, and while Simon can choose to do so, it's not true that he MUST be supervised. Reese is a Virginia licensee with a North Carolina limited nonresidential commercial license. She's affiliated with North Carolina resident broker Nicky for a commercial real estate transaction. Whose job is it to handle any trust funds relating to the transaction? - ----CORRECT ANSWER---------------Nicky is responsible for handling the trust funds as she would with trust funds in any other North Carolina transaction. Condominiums built during or after 1987 are regulated by ______. -----CORRECT ANSWER---------------The North Carolina Condominium Act Which one of the following people would be exempt from the real estate licensure requirement in North Carolina? -----CORRECT ANSWER---------------An attorney who's selling a property for a client, for compensation, using a power of attorney Which of the following statements about transaction records retention in North Carolina is true? -----CORRECT ANSWER---------------Records for all transactions, including offers and marketing records, must be retained for three years. Cory is a non-provisional broker in North Carolina. In order for him to receive compensation, he's required to complete ______ hours of continuing education every year -----CORRECT ANSWER---------------Eight Which of the following have studies shown to reduce access to employment opportunities? -----CORRECT ANSWER---------------Housing discrimination North Carolina broker Timothy's buyer client just signed an offer for her potential dream house. How long does Timothy have to get the offer delivered to the seller and his listing agent? -----CORRECT ANSWER---------------Three days
Which of the following defines a subdivision? -----CORRECT ANSWER---------------A tract of land divided into lots or plots and used for building purposes A certified septic inspector looks at the septic tank, the distribution box, and the _______ for code compliance. -----CORRECT ANSWER---------------Absorption field Laura's property is subject to a special assessment. Which of the following is true? ----- CORRECT ANSWER---------------The special assessment must benefit Laura's property. One advantage to a modular home is that ______. -----CORRECT ANSWER--------------- They're built off site Nathan assisted with the sale of a commercial building. He doesn't hold a real estate license, yet his actions didn't violate any license laws. What must be true about Nathan's situation? -----CORRECT ANSWER---------------Nathan is an officer or employee of the company that owned the building he sold. Mary's broker is completing a vacation rental agreement for new clients who will be renting her beach villa in Kure Beach. Should he include a statement in the vacation rental agreement that details the penalties if the clients cancel? -----CORRECT ANSWER---------------Yes. It's not a required element of a North Carolina vacation rental agreement, but it's a good idea. Tabitha is a North Carolina broker who has just left her previous brokerage to join Diamond Realty. How long does she have to notify NCREC of this change in firm affiliation? -----CORRECT ANSWER---------------She has 10 days.
- Any change in firm affiliation or personal information requires NCREC be notified in writing within 10 days of the change.
she put in place? -----CORRECT ANSWER---------------A cooperation agreement with Ash Brokerages that set additional limitations on sharing compensation but fail to disclose this to prospective clients may face ______. -----CORRECT ANSWER--------------- Misrepresentation charges Which of the following statements about firm license requirements in North Carolina is true? -----CORRECT ANSWER---------------Each firm is required to have one qualifying broker. Which type of North Carolina team structure prohibits team members from advertising using the team's name? -----CORRECT ANSWER---------------None of them A Licensee may not earn compensation when there license - VIP ----CORRECT ANSWER---------------is INACTIVE or EXPIRED A Licensee can receive compensation that was earned WHEN - VIP ----CORRECT ANSWER---------------the license was current and active even if inactive of expired after A BIC may NOT pay a licensee's ENTITY ----CORRECT ANSWER---------------unless the entity has a firm license. A Licensee can share commission with parties BUT ----CORRECT ANSWER--------------
- Must be in writing - as part of the agreement
- Must be subject to Lender Approval in case of loans
- Disclosed on the Closing Disclosure
- Is considered a gift
- Only with principal or client (not others)
Compensation ALWAYS flows through the firm ----CORRECT ANSWER---------------1) from the BIC
- NO payment directly by the firm
- Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships When Paying Non-Affiliated Brokers or Firms ----CORRECT ANSWER---------------1) Best Practice to put in writing - Not a Rule
- May pay referral fees to brokers in any state if person has a CURRENT and ACTIVE license
- DOCUMENTATION in broker's file:
- Written documentation regarding fee
- Proof of licensure
- Copy of a W9 for Brokerage Insurance or a 1099 When receiving Bonuses & Incentives ----CORRECT ANSWER---------------Disclosure AND consent by Principal is REQUIRED RESPA Prohibits ----CORRECT ANSWER---------------KICKBACKS to Settlement Service Providers
- BANKS
- APPRAISAL COMPANIES
- TITLE OFFICERS
- ATTORNEYS RESPA STATUTE ----CORRECT ANSWER---------------Applies to:
- 1 - 4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED LOAN
- ENFORCED BY HUD
Commercial Real Estate Lien Tim Requirements ----CORRECT ANSWER---------------1) Not until 30 days of closing or possesion
- For Leases - 90 days or written 60 days of non payment
- Broker has 18 months to enforce
- Lien priority is as of the date of recordation. NO SPECIAL PRIORITY
- Mechanics Liens ALWAYS have superiority over the broker's regardless of when they are filed The Basics of Condominiums ----CORRECT ANSWER---------------The formal legal definition of a condominium is when owners
- have a separate Fee simple AND
- share ownership of common area
- title to the common area is Tenants in Common Regarding Condominiums: What must be disclosed to prospective buyers prior to sale - VIP ----CORRECT ANSWER---------------Public Offering Statement Regarding condominiums: When must the disclosure of POS happen ----CORRECT ANSWER---------------Prior to purchase contract How many days do prospective buyers have to rescind from contract ----CORRECT ANSWER---------------A MANDATORY 7 day right of rescission Regarding condominiums: ----CORRECT ANSWER---------------There must be a unit owner's association formed prior to transfer of first unit
Regarding condominiums: there may be a special class of common areas that is reserved for use by one or more units. These areas are called ----CORRECT ANSWER- --------------Limited Common Areas Regarding condominium insurance coverage ----CORRECT ANSWER---------------Policy H06 owner's "walls" in coverage is covered What typically covers the common areas of a condominium ----CORRECT ANSWER---- -----------the Condo Master Policy To sell timeshare in North Carolina one MUST have ----CORRECT ANSWER--------------
- a real estate license Definition of TIMESHARE in NC ----CORRECT ANSWER---------------the sale or lease with a right to occupy the property or unit at least
- 5 or more separate time periods
- over a period of at least 5 years When must a POS be provided to prospective buyers when selling a TIMESHARE interest VIP ----CORRECT ANSWER---------------prior to contract What must be obtained prior to the sale or offer to sell or lease a TIMESHARE interest - VIP ----CORRECT ANSWER---------------Certificate of Registration TIMESHARE developer must designate ----CORRECT ANSWER---------------a licensee who is NOT on provisional status to act as PROJECT BROKER
- licensee must have an active license in another state Requirements to get a Limited Commercial Real Estate License ----CORRECT ANSWER---------------1) File an application
- Affiliate with a NC Broker
- Limited to commercial real estate practice Transaction times in commercial real estate sales are ----CORRECT ANSWER------------ ---often longer than residential sales Loan terms in commercial real estate financing ----CORRECT ANSWER---------------are shorter than residential Interest rates in commercial real estate financing ----CORRECT ANSWER--------------- are higher then residential Basic types of commercial real estate ----CORRECT ANSWER---------------land, office building, retail building, industrial, speciality properties Commercial Real Estate Classes ----CORRECT ANSWER---------------Class A:
- No more than 20 years old
- modern features
- well maintained
- excellent quality Class B:
- 20 - 30 years old
- maintained and functioning
- some limitations such as parking and locations Class C:
- older than 30 years
- lack of maintenance, parking, security
- serious limitiations
Definition of Core area in a commercial building - VIP ----CORRECT ANSWER------------ ---area used for building functions. For Example Lobbies, stair, mechanical rooms, elevators, restrooms Definition of Rentable area or square footage - VIP ----CORRECT ANSWER--------------- Core area plus Usable area Definition of Floor Plate ----CORRECT ANSWER---------------Area of the floor determined by measuring the exterior walls Definition of Useable area - VIP ----CORRECT ANSWER---------------The floor plate minus the core area Office rental rates are usually calculated - VIP ----CORRECT ANSWER---------------per square foot for the rentable area Tenant Improvements ----CORRECT ANSWER---------------Commercial lease or sale in which TENANT makes and pays for repairs or improvement Upfits ----CORRECT ANSWER---------------Commercial lease or sale in which OWNER makes and pays for repairs or improvement Passthrough provisions in commercial real estate are ----CORRECT ANSWER------------ ---Taxes, Insurance, and Maintenance
