a course of study prescribed by the Commission.

Summary Notes: NC Real Estate License Law & Real Estate

Commission Rules Flashcards What is a REALTOR?A licensed agent who is a member of the National Association of REALTORS, a private trade association.What is a time share?The right to occupy a unit or any of several units during five or more separate time periods over a period of at least five years, including renewal options, whether or not coupled with a freehold estate or an estate for years.What qualifies a person to be a broker-in-charge? Must have two years of full-time real estate brokerage experience or an equivalent of part-time work and complete a course of study prescribed by the Commission.Can a broker pay a fee to a travel agent? Yes, but the Commission cannot authorize a non-licensed person to negotiate any real estate transaction on behalf of another.What can a Provisional Broker do?Basically anything a BROKER does, but it must be under direct supervision of a broker-in-charge.Are time shares considered real estate?Yes. And, as such, it is governed by the laws of NC regarding real estate.Can the courts revoke a real estate license? No. They can recommend that action to the Commission, but only the Commission can revoke a license.Can the Commission regulate fees?No. They cannot make rules regulating commissions, salaries or fees to be charged by licensees.What is required for an agreement for brokerage services between a broker and a buyer or tenant to be valid?Must be express, in writing, and signed by the parties before any offer to purchase, sell, rent, lease, or exchange real estate.Describe the NC Real Estate Commission membership/board

• members. 7 are appointed by the Governor. 2 appointed

by the General Assembly based on recommendations of the Senate and the House, respectively. At least 3 must be licensed brokers. 2 must have no affiliation with real estate.Terms are staggered every 3 years, so 3 expire one year, 3 the second year, 3 the third. They are compensated.Who can prepare a broker price opinion (BPO) or comparative market analysis (CMA) for a fee?A licensed broker, but NOT a provisional broker.What is one thing every listing agreement or agency agreement must have?The non-discrimination statement that the broker shall conduct all brokerage activities in regard to the agreement without respect to the race, color, religion, sex, national origin, handicap, or familial status of any party or prospective party. It must be clear and conspicuous.Can a broker-in-charge act as one of the designated brokers with the other designated broker being a provisional broker under their supervision?No. A broker-in-charge can be one of the designated agents, but NOT if the other designated agent in the transaction is a provisional broker under his/her supervision.

What is designated agency?When two people in the same firm are designated to represent on the buyer and only the seller.How long does the purchaser of a time share have to cancel a contract?Within 5 days of execution of the contract.Where does a licensee keep his/her proof of licensure?Each licensee shall carry his or her pocket card on her person at all times while engaging in real estate brokerage and shall produce the card as proof of licensure whenever requested.What are the license status categories of a broker license?Provisional BrokerBrokerBroker-in-Charge When does an agent need to give a prospective buyer or seller the "Working With Real Estate Agents" brochure?At first substantial contact. If that contact is by phone, it should be at the first opportunity, but no later than three days from that first substantial contact.What is required for an agreement of exclusivity? Any agreement between a broker and a buyer or tenant that will bind for a specified time period or restrict the buyer or tenant's right to work with other agents must be in writing from the start.Does a time share transfer instrument need to be recorded?Yes. To protect the interest, it must be recorded in the Register of Deeds.What makes a contract for broker services valid? It must be in writing and signed by the person to be charged (or a legal representative of that person).How much continuing education does a broker need each year?At least 8 hours of continuing education must be completed by a licensed broker each year. If not completed, the broker cannot practice real estate.What are the basic requirements for applying for a real estate license?18 years old, successfully pass a 75-hour training course, pay $30 fee.Who is required to have a real estate license? Any person or business entity who directly or indirectly engages in the business of a real estate broker FOR COMPENSATION (or promise thereof) while physically in NC, must have a NC real estate broker license.Do you need a real estate license to sell time shares?Yes.When can a time share developer offer a time share for sale in NC?After obtaining a certificate of registration from the NC Real Estate Commission. It's a Class I felony to offer them for sale without it.What happens if a developer fails to provide a purchaser with the statements required?Purchaser can get 10% of the sales price, not to exceed

$3000.

When do real estate licenses expire?June 30.What can a non-licensed employee of a real estate brokerage do?Administrative work, accept leases, showing properties, accepting deposits, etc. In vacation property, they CAN offer a price off a schedule of prices.What happens when a licensee changes his/her name?Broker must file the change within 10 days of the change at the Register of Deeds in each county in which he/she plans to do business.What is a Provisional Broker?Entry-level license status categoryPerson has met all license qualifications (75-hour pre licensing class and passing the Commission's exam)

What penalties can the Commission impose? Reprimand, censure, suspend, revoke. Cannot fine.What is a dual agent/agency?A firm that represents more than one party in the same real estate transaction. Dual agency must be disclosed.Who can do real estate activities and not need a license?A partnership, corporation, LLC, association or other business entity that, as owner or lessor, performs acts in the regular course of business - extends to officers and employees of the company.Someone acting as attorney-in-fact under duly executed power of attorney.Acts or services performed by an attorney who is an active member of the NC State Bar.Any person acting under order of any court as executor.Any individual owner who personally leases or sells their own property.Any housing authority.