1. Under North Carolina license law, which of the following individuals is required to hold an active real estate license to perform brokerage services for compensation?
- A. An attorney acting in the regular course of legal practice while handling a real estate transaction for a client
- B. A property manager hired by an owner to lease and manage the owner's single apartment building on a salaried basis
- C. A licensed auctioneer who sells real property at auction for compensation on behalf of another ✓
- D. A trustee conducting a foreclosure sale under a deed of trust
Under NCGS 93A-2, auctioneers who sell real property for compensation on behalf of others are engaged in brokerage and must hold a real estate license. Attorneys acting in the course of their practice, salaried employees managing their employer's property, and trustees conducting foreclosure sales are among the statutory exemptions from licensure.
2. A North Carolina provisional broker who has been issued an initial license must work under the supervision of a broker-in-charge. How long does a provisional broker remain on provisional status?
- A. Until the provisional broker completes 60 hours of post-licensing education
- B. Until the provisional broker completes 90 hours of post-licensing education and the Commission removes provisional status ✓
- C. For a mandatory period of one year regardless of any education completed
- D. Until the provisional broker passes a second state examination focused on brokerage practice
Under NCREC rules, a provisional broker must complete 90 hours of post-licensing education (three 30-hour courses) within 18 months of initial licensure. Once those courses are completed and reported, the Commission removes provisional status and the broker may operate without mandatory supervision.
3. Under North Carolina law, what is the term length of a standard real estate license issued by the NCREC, and when does it expire?
- A. One year, expiring on December 31 of each year
- B. One year, expiring on June 30 of each year ✓
- C. Two years, expiring on June 30 of every even-numbered year
- D. Two years, expiring on December 31 of every odd-numbered year
North Carolina real estate licenses are issued for a one-year term and expire on June 30 of each year. Brokers must renew annually by that date to maintain an active or inactive license in good standing.
4. Under NCREC rules, which of the following actions would automatically render a North Carolina broker's license inactive?
- A. Failing to pay the renewal fee by June 30 of the license year
- B. Failing to complete continuing education by June 10 of the license year ✓
- C. Voluntarily requesting inactive status in writing to the Commission
- D. Being employed by a firm whose broker-in-charge leaves the position
Under NCREC rules, a broker who pays the renewal fee on time but fails to complete required continuing education by June 10 (the CE deadline) will have their license renewed in inactive status. The license does not expire for nonpayment if paid on time, but CE noncompliance triggers automatic inactive status upon renewal.
5. Which of the following persons may serve as a broker-in-charge (BIC) in North Carolina?
- A. Any active broker with at least one year of full-time brokerage experience who notifies the Commission in writing of their BIC designation
- B. Any active broker who has completed the NCREC's BIC course and has been designated as BIC by the firm, provided they meet the Commission's experience requirement ✓
- C. Any provisional broker who has completed all 90 hours of post-licensing education
- D. Any licensed broker regardless of experience, provided they hold an active license
In North Carolina, a person serving as broker-in-charge must be an active, non-provisional broker, must satisfy the Commission's BIC experience requirement, must complete the required BIC course within the applicable timing rules, and must be properly designated with the Commission. Provisional brokers cannot serve as BIC merely by completing post-licensing education. The experience requirement is not limited only to two years of full-time brokerage experience; the Commission also recognizes qualifying part-time or equivalent experience.
6. Under North Carolina license law, which of the following best describes the licensing status called 'inactive'?
- A. The license has been revoked by the Commission for a disciplinary violation
- B. The license is current and renewed but the broker is not affiliated with a firm and cannot perform brokerage services for compensation ✓
- C. The license has lapsed due to failure to renew and must be reinstated by examination
- D. The broker may perform limited brokerage services such as property management but not sales
An inactive license in North Carolina is a current, renewed license held by a broker who is not affiliated with a firm or has chosen not to practice. An inactive broker may not perform any brokerage services for compensation. The license remains valid but dormant; it is distinct from a revoked or expired license.
7. A North Carolina real estate firm must designate one broker-in-charge. Which statement is TRUE regarding a BIC's responsibilities under NCREC rules?
- A. The BIC is personally liable for all financial obligations of every affiliated broker
- B. The BIC is responsible for the supervision of provisional brokers affiliated with the firm and must review their transactions ✓
- C. The BIC must co-sign all listing agreements entered into by affiliated provisional brokers
- D. The BIC may delegate all supervisory duties to a provisional broker who has completed post-licensing education
Under 21 NCAC 58A .0110, the BIC is responsible for supervising all provisional brokers affiliated with the firm, which includes reviewing their transactions and ensuring compliance with license law. The BIC need not co-sign all listing agreements, cannot delegate BIC duties to a provisional broker, and is not personally liable for affiliated brokers' financial obligations.
8. Under NCGS 93A, which of the following applicants is most likely to be denied a North Carolina real estate license on grounds of character?
- A. An applicant who received a speeding ticket three years ago
- B. An applicant convicted of obtaining property by false pretenses five years ago who did not disclose the conviction on the application ✓
- C. An applicant who was denied a license in another state for failing that state's examination
- D. An applicant who has outstanding student loan debt
The NCREC may deny licensure to applicants who have committed acts involving moral turpitude or dishonesty. A conviction for obtaining property by false pretenses is directly relevant to fitness for licensure, and the failure to disclose it on the application constitutes an additional act of dishonesty, compounding grounds for denial.
9. Which of the following transactions does NOT require a North Carolina real estate license under NCGS 93A?
- A. A person who negotiates a lease of commercial space for one year on behalf of a landlord for a fee
- B. A person who lists and sells residential homes for a 3% commission on behalf of sellers
- C. A person who sells their own personally owned real property ✓
- D. A person who manages multiple residential properties for multiple unrelated owners for a monthly fee
NCGS 93A-2 exempts owners selling their own property from the license requirement. License law governs those who act on behalf of others for compensation. Selling your own real estate, regardless of frequency or value, does not require a license.
10. Under NCREC rules, if a licensed North Carolina broker changes their home address, the broker must notify the Commission within what time period?
- A. 30 days
- B. 60 days
- C. 10 days ✓
- D. At the time of the next license renewal
Under NCREC rules, including 21 NCAC 58A .0104, a North Carolina broker must notify the Commission of a change in address within 10 days of the change. Therefore, the correct answer is 10 days, not 30 days.