What happens if a license becomes inactive? To reactivate license: Postlicensing course must be

NC Real Estate License Law & Real Estate Commission Rules Flashcards What happens if a license becomes inactive? To reactivate license: Postlicensing course must be completed and CE must be current.How do I remove the Provisional Broker status? Must complete 3 postlicensing courses within 3 years, at least 1 per year. 90 hours of postlicensing (3 - 30hr classes) If not completed in time, license goes inactive Can a BIC hire a book-keeper? Broker-In-Charge may hire book-keeper, secretary or other employee to perform record and deposit duties BIC remains responsible for care and custody of the funds and should carefully supervise whomever has access to the funds 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.Describe the Reporting Criminal Convictions Rule Any broker must file within 60 days of final judgment, order

or disposition: Conviction of felony or misdemeanor,

Discipline by governmental agency for other occupational license, Notarial commission restriction, suspension or revocation.When is a Trust Account Required? When a broker takes possession of trust money If a broker does not collect or handle the funds of others, no trust account is required Inactive brokers do not have to maintain a trust account Only one account is required, but sometimes brokers choose to have separate accounts if they practice general brokerage and property management 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.What is a Provisional Broker?Entry-level license status category. Person has met all license qualifications (75-hour pre licensing class and passing the Commission's exam)

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.How do I change my license status?All Provisional Brokers are initially inactive. PBs must be under an active Broker-in-Charge to become active. All brokers must satisfy CE requirements each year to remain active. If inactive (person or firm), must file a request for license activation. A broker may change from active to inactive by submitting a written request to the REC.What is the definition of Trust money? All money received by a broker acting in his or her fiduciary capacity as a broker (including money received as an escrow agent or as the custodian or manager of the funds of another person or entity which relate to or concern that person's or entity's interest or investment in real property) Earnest money, down payments, tenant security deposits, rents Describe the basic required features of a Trust Account Demand deposit account in an FDIC insured institution which agrees to make its records of the broker's account available for inspection by Commission Separate account only for trust funds Custodial - only broker/employees have access Available on demand What are the requirements for Licensing of Individual Persons?Must be 18 or older Pass a RE Prelicensing course within

• years Submit application, background check and fee

Describe the Tenant Security Deposit Act The trust account holding the security deposit must be in NC as of 1/1/2012, b/c of this new act. Landlord may alternatively furnish a bond for the security deposit Trust account must be clearly designated trust account or escrow account, with those words appearing on all bank documents regarding the account Describe the rules for Homeowner Association Funds If a broker handles HOA funds, they are required by Rule A.0107(i) to maintain a separate account for each individual HOA The HOA funds cannot be commingled with another HOA's funds Broker must also provide statements at least quarterly with receipts, disbursements, delinquent funds, and balance According the North Carolina Time Share Act, who is a "developer"?Any person or entity which creates a time share or a time share project or program, purchases a time share for purpose of resale, or is engaged in the business of selling its own time shares and shall include any person or entity who controls, is controlled by, or is in common control with the developer which is engaged in creating or selling time shares for the developer (a person who purchases a time share for his or her occupancy, use, and enjoyment shall

not be deemed a developer).When do real estate licenses expire?June 30. Licensees must complete renewal application and submit fee (currently $45.00) before 6/30 each year. All CE requirements must be met prior to submitting renewal application.Engaging in RE business while expired is subject to reprimand

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 should a Broker keep records in file? Brokers shall retain all records for 3 years after all funds held by broker in connection with the transaction have been disbursed. All such records must be made available to the commission without prior notice.How long does the purchaser of a time share have to cancel a contract?Within 5 days of execution of the contract.What happens if a license gets expired or revoked?Licenses expired for 6 months or less may be reinstated by paying a $55.00 fee (to go to active status must also complete all required CE). More than 6 months - application, $55.00 fee. Commission may require RE education and/or examination to be completed or both.Reinstatement of a revoked license requires same action as an expired more than 6 month license, plus a $30 fee.Describe the requirement for a Broker-In-Charge (BIC) Every firm & office (physical space) must have only one BIC A BIC cannot be BIC of more than one office at a time If an office houses more than one firm, a BIC can be BIC over more than one firm housed in the same physical office Describe the Handling of Trust Money Rule Trust money must be deposited in trust account within 3 banking days following receipt (applies to all cash

received)Exceptions: Provisional broker must deliver funds

to BIC Nonresident Commercial Broker must deliver funds immediately to Resident Broker to deposit into trust account Earnest Money or Tenant Security Deposits paid by 'Other than currency (cash)' must be deposited in trust account within 3 days following acceptance of offer or lease Check payable to seller for option or due diligence fee may be accepted by a broker only for the purpose of delivering to the seller. (While in possession of the broker, broker must follow buyer's instructions) Must be delivered within 3 days of acceptance of option or contract Broker may choose to immediately deposit checks for Earnest Money or Tenant Security deposit, and is not required to wait until