NC Real Estate Exam Study Guide Flashcards

NC Real Estate Exam Study Guide Flashcards What are the specific disciplinary measures that the commission can take?

• Reprimand2. Censure3. Suspend license4. Revoke

license5. Seek injunctive relief Requirements for agency contracts with seller In writing before services are provided and signed by all parties when contract is formedMust give written disclosure that they represent seller if they start to work with the buyer BICSupervises provisional brokers at a certain office. Every office must have oneSeparate license category What is required in a CMA/BPO performed for compensation?

• The estimated selling price must be reported in a range

and must provide an explanation if the range is more than 10%2. Income analysis methodology must be used (such as income capitalization or GRM, or sales comparison)3.Broker must be competent When should an agent working with a buyer disclose to a seller that they work for a buyer?At initial contact (such as calling the listing firm to schedule an appointment) Brokerage activities requiring a license 1. Listing/offering to list real estate for sale/rent2.Selling/buying or offering to sell/buy3. Leasing/renting or offering to lease/rent4. Conducting/offering to conduct a real estate auction5.Selling/buying/leasing/assigning/exchanging interest in real estate in connection w/sale or purchase of business CE requirements8 hrs per year Provisional brokerEntry level. Must be supervised by BIC. Temporary status.Must complete PLE to bc brokerApplies to anyone who was issued a license on or after April 1 2006 What documents must be retained by the broker? Sales contracts, leases, offers, agency contracts, earnest money receipts, trust account records, disclosure documents, closing statements, broker cooperation agreements, BPOs and CMAs, and any other records relating to the transaction What are the powers of the commission?1. Licensing brokers and firms2. Registering time share projects3. Establishing and administering PLE and CE programs4. Providing education and info on real estate to licensees and to the public5. Regulating business activity of brokers and firms6. Disciplining violators of the law or of the commission rules Who fills vacancies in the commission?The governor Firm licenseLicense for business entity First substantial contactFirst face to face meeting with buyerWhen buyer gives specific needs, desires, and financial informationDisclosure of agency relationship must be given within 3 days of 1st substantial contact

How many members of the commission must be licensed real estate brokers?3 When was the NC appraiser's act amended? October 1, 2012 Dual agency of a firmWhen one agent of the firm represents the seller and another agent of the firm represents the buyer Fee for duplicate licenses?$5 Examples of trust moniesEMD, down payments, tenant security deposits, rent, HOA dues/assessments, money from final settlement When should an agency brochure (Working with Real Estate Agents brochure) be provided?At first substantial contact Designated agencyWhen a firm appoints one agent to represent a buyer and another agent to represent a seller When is oral dual agency permitted?When a buyer has an agent under an oral agency agreementWritten dual agency is required before an offer is made Requirements for written agreements1. Exist for definite amount of time2. Terminate without notice at end of specified time3. License number of agent4.Non-discrimination and fair housing provision

• primary features of trust/escrow accounts Separate - contains only monies from that

transactionCustodial - only the broker has access to the accountAvailable on demand - funds can be withdrawn at any time without prior notice What is an exception to the rule for agency contracts stating that they must terminate at a specific time?Contracts with a landlord to find tenants may renew with the option for the landlord to terminate at the end of each period How many members of the commission must be members of the public who aren't real estate licensed?2 What is the difference between a CMA and a BPO? Estimate for third party for purpose other than mortgage loan origination - BPOEstimate for seller or buyer - CMA Examples of trust monies for resort or short-term rentalsAdvance reservation deposits, state sales taxes on gross receipts from rental How many members are there in the commission? 9 members When should a buyer receive a copy of an offer they've signed?Immediately What type of account is a trust account? Demand deposit account What can happen if your payment form to the commission for fees due is invalid?Your license can be denied, suspended, or revoked Ways to prove you are licensed?1. Renewal pocket card2. License certificate What is the time limit for agents to deliver copies of agency agreements, contracts, offers, leases, or options?

• days from date of execution, but should be done ASAP!

Fair housing provision protects:Race, color, religion, sex, origin, handicap, familial status Fee for course application for sponsorNot to exceed $125 per course Where are renewal pocket cards kept?For a broker - on their personFor a firm - at the firm Do you have to be licensed to get paid for referrals?Yes, you must have an active license

Limited non-resident commercial brokerMust be affiliated with an NC firm and supervised by an NC brokerSeparate license PLE for provisional brokers90 hrs within 3 years of licensure Activities exempt from licensing requirement 1. Owners/lessors2. Attorney-in-fact3. Receiver, trustee, guardian, administrator, executor, person acting under court order4. Attorney who is a member of the NC state bar5. Salaried employee of broker6. Business entity How long do licensees have to submit a change of name or address?Within 10 days of change Dual agency disclosure is required in what types of transactions?All types of transactions What exceptions apply to an agent representing the seller in an auction sale?Do not need to give out brochureDo not need to disclose agency status to buyers Requirements for agency contracts with buyer Express, in writing and signed no later than time that buyer makes an offer (can be an oral contract up until offer is made)If agreement restricts buyer/tenant to only working with said agent - must be in writing and signed upon contract formation Allowed activities of unlicensed, salaried employee1. Receive/forward calls and messages to broker2. Submit listings/changes compiled by broker to MLS3. Get public records4. Place for sale signs and lock boxes on property5.Deliver and pick up documents6. Give basic info to prospective buyers7. Coordinate and confirm appointments8. Show rental properties and fill out leases9.Type offers, contracts, and leases that are preprinted10.Record and deposit earnest money11. Help assemble closing documents12. Give commission checks How long should brokers retain records?3 years from date of conclusion of transaction OR from disbursement of trust $, whichever occurs later Trust moneyMoney belonging to others held by broker Where are trust accounts located?In a federally insured depository institution Who sets the renewal fee?The commission Purpose of NC real estate commissionTo protect the public from real estate brokers BrokerUs! In charge Can a provisional broker perform a BPO/CMA for no fee?Yes, they are only restricted from performing a BPO/CMA if they are asking for compensation Is disclosure required for dual agency of a firm? Yes Who gives the client a copy of the closing statement?Broker In dual agency, what provision must be included in the agreement (that would NOT be needed for designated agency) Provision that agent will not disclose confidential information of either buyer or seller to buyer or seller BIC qualificationsActive license2 years full-time or 5 years part-time equivalentComplete 12 hr BIC course within 120 days of designation

What is required for dual agency?Written agreement from all parties Who elects chairman?Members Requirements for agency contracts with POA In writing and signed by all parties How long is the chairman's term?One year If the buyer will not sign an agency agreement before making an offer, then the agent can go and work for the

seller as the sub-agent AS LONG AS:

• The agent advises the buyer of the possible

consequences of this switch, such as disclosing confidential info on the buyer to the seller that may change the seller's mind2. The agent gets the consent of the buyer3. Obtains the consent of the seller and the seller's listing firm/agent Fee for reinstatement of expired license $55 How many members' terms expire every year? 3 Who removes members if they are found guilty of misconduct, incompetency, or willful neglect?The governor If agency agreement is terminated, how long should broker retain record?

• years from date of agency agreement termination OR

from disbursement of $ by that broker, whichever occurs later What is required for a provisional broker to advertise?1. Consent of BIC2. Name of broker/firm provisional broker is associated with Does an agency disclosure for a buyer's agent to the seller's agent need to be written?May be oral at first but must be written asap - no later than time of delivery of offer to purchaseWritten disclosure usually included in offer to purchaseException - auction sale transactions CE for BICsMust take a special 4 hr course How long do licensees have to report criminal convictions?Within 60 days of final judgment Who do agents typically represent in an auction sale?The seller If a buyer at an auction is represented by an agent, when should that agent disclose agency status to the seller?Written disclosure to seller immediately If an agent is secretly a dual agent, what could the punishment be?License may be revoked What is required from the client for the broker to put a for sale sign on a property?Written consent of owner's agent When should you renew your license?Within 45 days prior to expiration Blind adWhen a licensee illegally advertises an offer to buy or sell without disclosing their identity Does an agreement between brokers to share compensation need to be in writing?No, it is not an agreement for brokerage services October 1, 2012 NC appraiser act amendment 1. Active broker can prepare BPO or CMA for many entities for compensation (not just for clients)2. Provisional broker can't prepare a BPO or CMA3. Broker can't prepare BPO/CMA for lienholder or another party where BPO is to serve as basis of loan origination for mortgage4. BPO/CMA can only estimate selling price, not value5. BPO/CMA must be in writing