Download NC Real Estate Post Licensing Exam Prep: Agent Relationships, Contract Law, License Status and more Exams Real Estate Management in PDF only on Docsity!
NC Post Licensing – 303 Exam | Featuring Agent
Relationships and Responsibilities, Contract Law,
and License Status | Just Released
A landlord must hold the personal property of a tenant for.. ---------CORRECT ANSWER-----------------7 days if the property is worth over $500, and 5 days if it is valued under $500. A tenant has a ____ month defense to an eviction when they have asserted a legal right. ---------CORRECT ANSWER-----------------12 month Tenant may terminate lease early if they have a ---------CORRECT ANSWER----------- ------court order of protection, or restraining order, and must give 30 days notice to landlord Members of the military may terminate a lease with 30 days notice due to the following ---------CORRECT ANSWER------------------ Station changes order 50 miles
- Away involuntary or premature
- Discharged, deployed for 90 days or more death on active duty
All tenant security deposits must be deposited in a ---------CORRECT ANSWER------- ----------Trust account, although a private owner who is not a licensee may obtain a bond. The maximum amount that can be collected as a security deposit; --------- CORRECT ANSWER-----------------depends on the length of the lease For leases of a weekly term, the maximum deposit is ---------CORRECT ANSWER---- -------------2 weeks worth of rent For leases of a monthly term, the maximum deposit is ---------CORRECT ANSWER--- --------------1 1/2 months For leases longer than a month, the maximum deposit is ---------CORRECT ANSWER-----------------2 months All trust accounts must meet the following requirements regarding the bank: ------ ---CORRECT ANSWER------------------ Legally doing business in NC
- Designated trust or escrow
- Be a demand account
Key factors that affect commercial retail space: ---------CORRECT ANSWER------------ ------ Location
- Area demographics
- Traffic patterns
- Income levels
- Growth
- Trends There is no universally accepted standard for measuring of leasing retail space, but is usually leased; ---------CORRECT ANSWER-----------------Square foot as an annual dollar amount. When dealing with an industrial space, environmental issues are generally a major concern and sale or lease may involve environmental impact studies. The following are examples; ---------CORRECT ANSWER-----------------Phase I - Research and due diligence Phase II - Core drilling, samples, testing Phase III - Rem and clean up In commercial, A common practice is to use __________________________ before a final purchase contract is put together by the parties. ---------CORRECT ANSWER-----------------Letter of intent
Commercial purchase contracts usually contain an inspection period. When dealing with commercial property this is known as a.... ---------CORRECT ANSWER-- ---------------10 Day free look period When valuing an income-producing property, the best appraisal approach to utilize would be the ---------CORRECT ANSWER-----------------Income approach Real estate that has not been an owner-occupied residence for 2 out of the last 5 years prior to sale, is subject to: ---------CORRECT ANSWER-----------------Capital gains tax Property that is used in a trade or business may qualify for a tax credit in the form of: ---------CORRECT ANSWER-----------------Depreciation When an investor seeks to sell a property that is subject to capital gains tax and invests the money in another real estate investment, they may elect to defer the tax by using a.. ---------CORRECT ANSWER-----------------1031 Tax deferred exchange A tax-deferred exchange can never be utilized when dealing with ---------CORRECT ANSWER-----------------like kind property
In NC, active RE license is required when: ---------CORRECT ANSWER----------------- When assisting another broker for compensation in the providing of brokerage services. When can an unlicensed person engage in real estate activity? ---------CORRECT ANSWER------------------ Their own property
- Attorney in fact
- Attorney at law
- Court-ordered sales
- Trustees in foreclosure
- Housing authorities "Power of attorney" exemption exists to allow: ---------CORRECT ANSWER------------ -----Allow others to use a power of attorney for final consummation in the performance of a contract. In a corporation, who is exempt from licensure when handling entity's own property? ---------CORRECT ANSWER-----------------Officers, directors, and W employees. In a LLC, who is exempt from licensure when handling entity's own property? ------ ---CORRECT ANSWER-----------------Managers and W2 employees.
In a partnership, who is exempt from licensure when handling entity's own property? ---------CORRECT ANSWER-----------------General partners, and W employees. Deadline for license renewal is midnight on? ---------CORRECT ANSWER--------------- --June 30 every year. License renewal fee $? ---------CORRECT ANSWER-----------------$ Deadline for all CE completion is: ---------CORRECT ANSWER-----------------June 10 Failure to renew license results in license being? ---------CORRECT ANSWER---------- -------Expired How many hours required for Post lisencing and when is the deadline? --------- CORRECT ANSWER-----------------90 hr post licensing, deadline is 18 months from date of licensure.
Provisional brokers who are not affiliated are considered ---------CORRECT ANSWER-----------------Inactive Full broker may either ---------CORRECT ANSWER------------------ Affiliate with a BIC/Firm
- Activate as a Sole Proprietor If full broker is not affiliated with a BIC they CANNOT: ---------CORRECT ANSWER--- --------------- Maintain a trust account for others
- Hire/Supervise other brokers
- Offer services, advertise, or market in any way An individual can be the BIC of more than one firm, only if? ---------CORRECT ANSWER-----------------Only if the firms are at the same physical office location. Provisional broker can only affiliate with more than one BIC if, ---------CORRECT ANSWER-----------------they have mutual consent/permission of both BICs When should a provisional broker deliver monies to BIC? ---------CORRECT ANSWER-----------------Immediately
All deposits must be made to the trust account within.. ---------CORRECT ANSWER- ----------------3 banking days of receipt or contract acceptance, whichever is later. Trust accounts may earn interest so long as, ---------CORRECT ANSWER----------------
- The broker has written consent of the client and a written agreement specifies who gets the interest. BICs may transfer earnest money for closing no more than ---------CORRECT ANSWER-----------------10 days prior to settlement Trust accounts must be balanced every: ---------CORRECT ANSWER----------------- Every 30 days Trust account records must be maintained for ---------CORRECT ANSWER------------- ----3 years Sole Proprietorship ---------CORRECT ANSWER-----------------No creation of an entity but may operate under a trade name. Personally liable for all debts and liabilities. Income taxed as regular income, no shelter of tax liability.
A full broker may gain tax benefits and liability protection by forming an entity solely for the purposes of ---------CORRECT ANSWER-----------------receipt of compensation. Steps for full broker creating an entity ---------CORRECT ANSWER------------------ Must obtain a firm license as a qualifying broker.
- Do not need to become a BIC or BIC-eligible
- May not advertise or use this entity name in marketing or advertising.
- May not affiliate other brokers under this entity name if not a BIC.
- Provisional brokers may NOT create an entity for the receipt of compensation. In order to be a qualifying broker, the licensee must be? ---------CORRECT ANSWER------------------ Full broker on active statues
- Principal of the entity seeking the firm license Obligations of qualifying broker ---------CORRECT ANSWER------------------ Renew firm license
- Appoint BIC in each location
- Maintain firm certificate and pocket card
- Notify NCREC within 10 days of change of qualifying broker, firm name, or registration of any assumed adopted firm name.
When QB fails to have a BIC in each office location, the firm license becomes ------ ---CORRECT ANSWER-----------------inactive BICs are selected by completing which form? ---------CORRECT ANSWER--------------- --Form 2.25 designation of BIC What unlicensed assistants may do ---------CORRECT ANSWER------------------ Receive and forward calls
- Submit listing data
- Search public records
- Place signs and lockboxes
- Order and supervise repairs
- Act as courier
- Gather factual data
- Schedule appointments
- Coordinate/confirm appointments
- Complete basic forms What unlicensed assistants may NOT do ---------CORRECT ANSWER------------------ Assist others in sale/lease
- Hold open house without license
- Cold call or prospect
- Make referrals for a fee
If inactive due to CE deficiency less than 2 years ---------CORRECT ANSWER----------- ------- Complete current years of CE - 8 hrs
- Complete previous years deficiency (4-8 hrs CE)
- File license activation form If inactive due to CE deficiency more than 2 years ---------CORRECT ANSWER--------- --------- Complete current years CE
- Complete 60 hours of Post - 2 post classes
- File license activation form The two key questions to ask any team are? ---------CORRECT ANSWER----------------
- Have you created an entity?
- Is the entity name being used in marketing and ads? Creating a team without creating an entity.. ---------CORRECT ANSWER---------------- -- Team name and licensees to be approved by the BIC of the firm.
- All licensees affiliated with the BIC of the firm.
- Brokerage firm name to be used on all disclosures and contracts
- No compensation may be paid to the team name.
- All compensation must be paid by the BIC
- The team may use the team name in advertising with permission of the BIC, but all advertising must also include the firm name. Referral file must consist of ---------CORRECT ANSWER------------------ Written agreement
- Licensure proof of referral source
- W9 issuance of a 1099 Commercial broker lien act ---------CORRECT ANSWER-----------------A lien may be placed against commercial properties for commercial services rendered in either a sale or lease transaction. Requirements to fil a broker lien are? ---------CORRECT ANSWER------------------ Written agreement specifying services and compensation.
- Must be a listing agent. Time requirements for commercial broker lien ---------CORRECT ANSWER------------- ----- It cannot be filed until it is within 30 days of closing or possession.
- For leases, the time is 90 days of possession or within 60 days of non-payment.
- Maintain firm certificate and pocket card
- Notify NCREC within 10 days of change in firm name or qualifying broker
- Notify NCREC of registration of any assumed name adopted by the firm.
- Preserve and secure trust account records and transaction records.
- Notify commission of any record or trust account deficiencies. A team may not use their name in advertising if ---------CORRECT ANSWER----------- ------the entity has no BIC PBs may only affiliate with two BICs if, ---------CORRECT ANSWER-----------------The BICs are with 2 different firms and in the same physical location and acting as co- listing/selling agents. Fair housing in North Carolina is enforced by? ---------CORRECT ANSWER-------------- ---NC Human relations commission. In NC the disciplinary process begins with? ---------CORRECT ANSWER----------------- The filing of a complaint Upon receipt of a complaint, NCREC is required to ---------CORRECT ANSWER-------- ---------investigate
An investigation results in ---------CORRECT ANSWER-----------------a letter of inquiry Respondents of a letter of inquiry must respond to NCREC withing --------- CORRECT ANSWER-----------------14 days Step by step plan for responding to letter of inquiry ---------CORRECT ANSWER------ ------------ Review the file
- Write a narrative response
- Attach documents
- Identify witnesses NCREC may impose any of the following sanctions on a licensee as a result of a disciplinary investigation; ---------CORRECT ANSWER------------------ License revocation
- License suspension
- Reprimand
- Conditions, restrictions, on the license When a provisional broker receives a letter of inquiry, who will be notified, --------- CORRECT ANSWER-----------------BIC
