North Carolina · state portion

Free North Carolina Brokerage Practice practice questions

10 original questions with full explanations. 12 of the 60 scored state-portion questions (about 20%) come from this area.

1. 1

   A buyer's agent is working with a buyer who wants to purchase a property listed by another brokerage. What must the buyer's agent do before advertising the property?

   • A. Obtain the written permission of the listing broker
   • B. Obtain the written permission of the seller
   • C. Obtain the written permission of the buyer
   • D. No permission is required, as long as the advertisement includes the listing broker's name
   Show answer & explanation

   Answer: A

   In North Carolina, a buyer's agent must obtain the written permission of the listing broker before advertising a property listed by another brokerage.

2. 2

   A North Carolina broker creates a social media advertisement for a listing without including the firm's name. What is the primary issue with this advertisement?

   • A. It does not include the broker's name
   • B. It does not include the property's price
   • C. It was not approved by the broker-in-charge
   • D. It does not include the firm's name
   Show answer & explanation

   Answer: D

   North Carolina requires that all advertisements include the firm's name and be under the supervision of the broker-in-charge.

3. 3

   A broker is found to have engaged in misrepresentation in a real estate transaction. What is the possible consequence of this action?

   • A. The broker's license will be suspended for 30 days
   • B. The broker will be required to pay a fine of $1,000
   • C. The broker will be subject to a warning letter
   • D. The broker's license may be revoked
   Show answer & explanation

   Answer: D

   Misrepresentation is a serious violation of NC rules and may result in disciplinary action, including license revocation.

4. 4

   A buyer and seller agree on a purchase price, and the buyer submits earnest money. Where must the earnest money be deposited?

   • A. The broker's personal bank account
   • B. The seller's bank account
   • C. The buyer's bank account
   • D. The firm's trust account
   Show answer & explanation

   Answer: D

   Earnest money must be deposited into the firm's trust account within three banking days after acceptance or receipt, as required by North Carolina Real Estate Commission rules.

5. 5

   A North Carolina broker is found to have engaged in self-dealing in a real estate transaction. What is a possible sanction from the North Carolina Real Estate Commission?

   • A. A warning letter
   • B. A reprimand
   • C. A suspension of the broker's license
   • D. All of the above
   Show answer & explanation

   Answer: D

   The North Carolina Real Estate Commission may impose sanctions, including a reprimand, suspension, or revocation of a broker's license, for engaging in self-dealing or other prohibited conduct.

6. 6

   A broker is accused of misrepresenting a property's features to a buyer. What is the first step in the disciplinary process?

   • A. The Commission will conduct a hearing
   • B. The broker's license will be suspended
   • C. The broker will receive a reprimand
   • D. The Commission will investigate the complaint
   Show answer & explanation

   Answer: D

   The first step in the disciplinary process is for the Commission to investigate the complaint.

7. 7

   A broker is advertising a property on social media and does not include the firm's name in the advertisement. What is the consequence of this action?

   • A. The broker is allowed to advertise without the firm's name as long as it is on social media
   • B. The broker can advertise without the firm's name as long as it is not a traditional advertisement
   • C. The broker must include the firm's name in all advertisements, including social media
   • D. The broker may be subject to disciplinary action by the Commission
   Show answer & explanation

   Answer: D

   Failing to include the firm's name in an advertisement, including social media, is a violation of North Carolina Real Estate Commission rules and may result in disciplinary action.

8. 8

   A buyer and seller have entered into a contract, and the buyer has paid an earnest money deposit. Where must the broker deposit the earnest money?

   • A. Into the broker's personal bank account
   • B. Into the firm's operating account
   • C. Into the seller's bank account
   • D. Into the firm's trust account within 3 banking days
   Show answer & explanation

   Answer: D

   The broker must deposit the earnest money into the firm's trust account within 3 banking days of receipt to avoid commingling.

9. 9

   A broker is required to maintain transaction records for a certain period. What is the minimum duration for retaining these records?

   • A. 1 year
   • B. 2 years
   • C. 5 years
   • D. 3 years
   Show answer & explanation

   Answer: D

   The broker is required to maintain transaction records for at least 3 years, as mandated by the Commission's rules on recordkeeping.

10. 10

    A provisional broker receives earnest money from a buyer. What should the broker do with the funds?

    • A. Deposit the funds into the broker's personal account
    • B. Give the funds to the seller
    • C. Hold the funds until the transaction closes
    • D. Deposit the funds into the firm's trust account within 3 banking days
    Show answer & explanation

    Answer: D

    The broker should deposit the funds into the firm's trust account within 3 banking days, as required by the North Carolina Real Estate Commission, to separate the funds from the broker's personal and operating accounts.