North Carolina · state portion

Free North Carolina Other NC Laws & Fair Housing practice questions

10 original questions with full explanations. 11 of the 60 scored state-portion questions (about 18%) come from this area.

1. 1

   A real estate broker is working with a buyer who is looking for a home in a specific neighborhood. The buyer expresses a preference for a neighborhood with a certain racial composition. What should the broker do?

   • A. Show the buyer only properties in neighborhoods that match their preferred racial composition
   • B. Report the buyer to the NC Real Estate Commission
   • C. Refuse to work with the buyer due to their discriminatory preferences
   • D. Inform the buyer that they cannot discriminate based on race and show them properties in all available neighborhoods
   Show answer & explanation

   Answer: D

   The broker should inform the buyer that they cannot discriminate based on race and show them properties in all available neighborhoods, as discrimination based on race is prohibited by the Fair Housing Act.

2. 2

   What disclosure statement are sellers of residential property in North Carolina required to provide to buyers?

   • A. Residential Property and Owners' Association Disclosure Statement
   • B. Mineral, Oil, and Gas Rights Disclosure Statement
   • C. Lead-Based Paint Disclosure Statement
   • D. Property Condition Disclosure Statement
   Show answer & explanation

   Answer: A

   Sellers of residential property in North Carolina are required to provide a Residential Property and Owners' Association Disclosure Statement to buyers.

3. 3

   A seller in North Carolina fails to disclose the presence of mineral rights on their property. What disclosure are they likely required to provide?

   • A. Mineral/Oil/Gas Rights Disclosure
   • B. Residential Property and Owners' Association Disclosure Statement
   • C. Property Condition Disclosure
   • D. Environmental Hazard Disclosure
   Show answer & explanation

   Answer: A

   In North Carolina, sellers are required to provide a Mineral/Oil/Gas Rights Disclosure to inform buyers about the presence of mineral rights on the property.

4. 4

   What is the Recovery Fund administered by the NC Real Estate Commission used for?

   • A. To reimburse consumers for unsatisfied judgments against licensees
   • B. To provide education to licensees
   • C. To regulate the real estate industry
   • D. To promote the real estate market
   Show answer & explanation

   Answer: A

   The Recovery Fund is used to reimburse consumers who have obtained an unsatisfied judgment against a licensee for fraud or misrepresentation.

5. 5

   What is the name of the disclosure that sellers in North Carolina are required to provide to buyers regarding the property's ownership and any applicable associations?

   • A. Residential Property Disclosure Statement
   • B. Owners' Association Disclosure Statement
   • C. Mineral Rights Disclosure Statement
   • D. Residential Property and Owners' Association Disclosure Statement
   Show answer & explanation

   Answer: D

   Sellers in NC must provide a Residential Property and Owners' Association Disclosure Statement to buyers.

6. 6

   What is the NC Real Estate Commission's role in rulemaking and enforcement?

   • A. To create and enforce rules for the real estate industry
   • B. To provide education for real estate professionals
   • C. To promote the real estate industry
   • D. To manage the licensing process
   Show answer & explanation

   Answer: A

   The NC Real Estate Commission is responsible for creating and enforcing rules for the real estate industry to protect the public.

7. 7

   What type of disclosure is required of sellers in North Carolina regarding mineral, oil, and gas rights?

   • A. A disclosure statement
   • B. A warranty deed
   • C. A title insurance policy
   • D. A home inspection report
   Show answer & explanation

   Answer: A

   Sellers in North Carolina are required to provide a disclosure statement regarding mineral, oil, and gas rights, which informs buyers about any rights or leases associated with the property.

8. 8

   Which of the following statements about the NC Real Estate Commission is TRUE?

   • A. It has 7 members
   • B. It is responsible for regulating the insurance industry
   • C. It is a federal agency
   • D. It administers the Real Estate Education and Recovery Fund
   Show answer & explanation

   Answer: D

   The NC Real Estate Commission has 9 members and administers the Real Estate Education and Recovery Fund.

9. 9

   How many members are on the North Carolina Real Estate Commission?

   • A. 5 members
   • B. 7 members
   • C. 11 members
   • D. 9 members
   Show answer & explanation

   Answer: D

   The North Carolina Real Estate Commission consists of 9 members.

10. 10

    A real estate broker in North Carolina is subject to which of the following laws?

    • A. Chapter 93A, which regulates the real estate profession
    • B. Chapter 75, which regulates business practices
    • C. Chapter 47, which regulates real property
    • D. Chapter 105, which regulates taxation
    Show answer & explanation

    Answer: A

    A real estate broker in North Carolina is subject to Chapter 93A, which regulates the real estate profession.