NORTH CAROLINA REAL ESTATE PRACTICE TEST QUESTIONS

A buyer and seller are represented by agents affiliated with different North Carolina real estate firms. The buyer submits an offer to purchase the sellers property that is accepted by the seller. All of the following would constitute a legally sufficient communication of the sellers acceptance of the buyers offer EXCEPT

A) Listing agent tells the buyer by telephone that the seller has accepted the buyers offer

B) buyers agent e-mails the listing agent asking about the status of the buyers offer and receives and e-mail response from the listing agent saying that the seller has accepted the buyers offer

C) listing agent tells the buyers agent by telephone that the seller has accepted the buyers offer

D) seller delivers the buyers offer signed by the seller without changes to the listing agent

2. Which of the following business entities would need a firm license?

A) a corporation that purchases an apartment building for the purpose of leasing units to tenants

B) a limited Liability Company (LLC) whose principals act as sales representatives for properties owned by the LLC

C) a corporation that owns a real estate development and uses W-2 employees to show properties for sale in the development

D) a limited liability company (LLC) that is owned by a corporation and will be managing the properties owned by the corporation

3. Under the supervision of the broker-in-charge, an unlicensed, salaried assistant of an affiliated broker is authorized to

A) record and deposit trust monies held by the firm

B) prepare contract and lease forms for a client to sign

C) write and place advertisements for listed property in publications

D) solicit listings and management contracts from prospective clients

4. The basis for determining the amount of special assessment for public improvement in North Carolina may lawfully be based upon the

A) projected number of years the property owner will benefit from the improvement

B) number of persons in the household expected to benefit from the improvement

C) ability of the property owner to pay, as determined by annual household income

D) dimensions of the lot benefited by the improvement

5. Which of the following is a legitimate reason for a North Carolina broker to agree to begin working with a buyer under an oral buyer agency agreement?

A) The terms of the oral agency agreement can remain non-specific with considerable leeway allowed both parties until such time as the agreement is reduced to writing

B) The broker is protected in this situation because the standard provisions of the North Carolina Association of REALTORS Exclusive Right to Represent buyer (Buyer Agency Agreement) form constitute the implied terms of the agreement

C) The broker is protected in this situation because the buyer is restricted from working with other brokers

D) The agreement may address the initial resistance of some buyers to enter into a written buyer agency agreement before they have an opportunity to become acquainted with the broker

6. A broker lists a small office building for rent. The owner tells the broker that the building contains 5,000 sqft. The broker advertises the property as having 5,000 sqft without verifying the square footage. A tenant views the property with his agent who shares the sq footage information from the listing brokers ad. The tenant signs a lease for rent based on the 5,000 sqft measurement and later learns that the building contains only 3,000 sqft. The North Carolina Real Estate Commission is most likely to take which of the following actions?

A) Declare the lease invalid

B) discipline the listing agent for misrepresentation

C) discipline both the listing agent and the tenants agent

D) order the listing agent to reimburse the tenant for the excessive rent

7. A broker-in-charge of an affiliated provisional broker is required to

A) annually renew the real estate license of the provisional broker

B) assign a supervising broker to review the work of the provisional broker

C) report any violation of North Carolina license law by the provisional broker to the Real Estate Commission

D) assure to the best of his or her ability that the provisional broker is legally performing brokerage activities

Please number the answers and a brief explanation if possible. Thank you in advanced!