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North Carolina Other NC Laws & Fair Housing — Printable Practice Pack
North Carolina state portion · NC Commission rules, provisional broker status and agency agreements · 20 questions · Answer key on the last page · agentexamcoach.com
1.What is the Recovery Fund established by the North Carolina Real Estate Commission used for?
(A)To reimburse consumers who have suffered losses due to a licensee's fraud or misrepresentation
(B)To provide financial assistance to real estate professionals who are experiencing financial difficulties
(C)To fund real estate education and training programs
(D)To pay for the operational expenses of the North Carolina Real Estate Commission
2.Which disclosure is required of sellers in North Carolina regarding property ownership and management?
(A)Residential Property Disclosure Statement
(B)Owners' Association Disclosure Statement
(C)Lead-Based Paint Disclosure
(D)Residential Property and Owners' Association Disclosure Statement
3.Which of the following is a requirement for sellers of residential properties in North Carolina?
(A)Providing a home inspection report
(B)Disclosing the presence of lead-based paint
(C)Providing a warranty for the property
(D)Disclosing mineral, oil, and gas rights
4.What is the name of the fund administered by the NC Real Estate Commission to reimburse consumers with unsatisfied judgments against licensees for fraud or misrepresentation?
(A)Recovery Account
(B)Consumer Protection Fund
(C)Real Estate Education Fund
(D)Recovery Fund
5.Which of the following statements about the North Carolina Real Estate Commission is true?
(A)It has 7 members
(B)It only regulates brokers
(C)It is responsible for zoning regulations
(D)It has 9 members
6.What is the consequence of a licensee's failure to comply with the North Carolina Real Estate Commission's rules and regulations?
(A)The licensee will be subject to a warning letter only
(B)The licensee will be exempt from future audits and inspections
(C)The licensee will be required to complete additional education courses
(D)The licensee will be subject to a fine and possible license suspension or revocation
7.Which of the following is NOT a function of the North Carolina Real Estate Commission?
(A)Licensing and regulation of real estate professionals
(B)Administration of the Real Estate Education and Recovery Fund
(C)Providing real estate education to the public
(D)Conducting real estate closings
8.A seller in North Carolina fails to disclose the presence of a homeowners' association in the subdivision. What disclosure statement should the seller have provided?
(A)Residential Property Disclosure Statement
(B)Mineral and oil and gas rights disclosure
(C)Lead-based paint disclosure
(D)Residential Property and Owners' Association Disclosure Statement
9.Which of the following is NOT a function of the NC Real Estate Commission?
(A)Regulating the practice of law
(B)Providing education to real estate licensees
(C)Protecting the public through rulemaking and enforcement
(D)Administering the RECOVERY FUND
10.How many members are on the NC Real Estate Commission?
(A)5
(B)7
(C)9
(D)11
11.What is the main purpose of the Recovery Fund administered by the North Carolina Real Estate Commission?
(A)To reimburse consumers who have been defrauded by a real estate broker
(B)To provide training for real estate brokers
(C)To promote the real estate industry in North Carolina
(D)To collect and distribute the excise tax on property transfers
12.Which of the following is a consequence of a real estate professional's violation of the North Carolina Fair Housing Act?
(A)Loss of real estate license
(B)Fine and penalty
(C)Damage to professional reputation
(D)All of the above
13.Which of the following is NOT a protected class under the federal Fair Housing Act?
(A)Race
(B)Color
(C)National origin
(D)Marital status
14.What is the primary purpose of the NC Real Estate Commission?
(A)To promote the real estate industry
(B)To manage the recovery fund
(C)To provide real estate education
(D)To protect the public
15.What fund is administered by the NC Real Estate Commission to reimburse consumers with unsatisfied judgments against licensees?
(A)Real Estate Education Fund
(B)Broker Guarantee Fund
(C)Consumer Protection Fund
(D)Recovery Fund
16.Which disclosure is required of sellers in North Carolina, in addition to other required disclosures?
(A)Residential Property and Owners' Association Disclosure Statement
(B)Mineral/oil/gas rights disclosure
(C)Termite inspection report
(D)Home inspection report
17.A buyer is purchasing a residential property in NC and has asked the seller about the property's owners' association. What document should the seller provide to the buyer?
(A)Residential Property and Owners' Association Disclosure Statement
(B)Mineral/Oil/Gas Rights Disclosure
(C)Homeowners Association Bylaws
(D)Property Survey
18.What is the result if a North Carolina real estate licensee is found to have engaged in unfair or deceptive practices?
(A)The licensee will be subject to a fine and possible license suspension
(B)The licensee will be required to take additional education courses
(C)The licensee will be eligible for a refund of their license fees
(D)The licensee will be automatically terminated from the real estate profession
19.What is the primary purpose of the North Carolina Real Estate Commission's Recovery Fund?
(A)To provide education and training for real estate brokers
(B)To regulate the real estate profession and enforce the license law
(C)To promote the real estate industry in North Carolina
(D)To reimburse consumers who have obtained an unsatisfied judgment against a licensee
20.In addition to the federal Fair Housing Act, what law provides additional fair housing protections in North Carolina?
(A)North Carolina State Fair Housing Act
(B)North Carolina Real Estate License Law
(C)North Carolina Consumer Protection Act
(D)North Carolina Housing Act
Answer key & explanations
1. A — The Recovery Fund is used to reimburse consumers who have suffered losses due to a licensee's fraud or misrepresentation.
2. D — Sellers in North Carolina are required to provide a Residential Property and Owners' Association Disclosure Statement to buyers.
3. D — Sellers in North Carolina are required to disclose mineral, oil, and gas rights.
4. D — The NC Real Estate Commission administers the Recovery Fund to reimburse consumers with unsatisfied judgments against licensees.
5. D — The North Carolina Real Estate Commission has 9 members, and its purpose is to protect the public through licensing, rulemaking, and enforcement.
6. D — A licensee's failure to comply with the North Carolina Real Estate Commission's rules and regulations can result in a fine and possible license suspension or revocation.
7. D — The North Carolina Real Estate Commission does not conduct real estate closings, as this is typically done by a licensed attorney in North Carolina.
8. D — The Residential Property and Owners' Association Disclosure Statement is the required disclosure for sellers to inform buyers about the presence of a homeowners' association.
9. A — The NC Real Estate Commission does not regulate the practice of law, but rather regulates the practice of real estate and protects the public through rulemaking and enforcement.
10. C — The NC Real Estate Commission has 9 members, whose purpose is to protect the public through rulemaking and enforcement.
11. A — The Recovery Fund is used to reimburse consumers who have been defrauded by a real estate broker and have an unsatisfied judgment against the broker.
12. D — A real estate professional who violates the North Carolina Fair Housing Act may face consequences including loss of real estate license, fine and penalty, and damage to professional reputation.
13. D — While marital status is a protected class under the NC State Fair Housing Act, it is not a protected class under the federal Fair Housing Act.
14. D — The NC Real Estate Commission's primary purpose is to protect the public through licensing, rulemaking, and enforcement.
15. D — The NC Real Estate Commission administers the RECOVERY FUND, which reimburses consumers who have obtained an unsatisfied judgment against a licensee for fraud or misrepresentation.
16. A — Sellers in North Carolina are required to provide a Residential Property and Owners' Association Disclosure Statement, which informs buyers about the property and any associated owners' association.
17. A — The seller should provide the Residential Property and Owners' Association Disclosure Statement to the buyer, which includes information about the property's owners' association.
18. A — If a North Carolina real estate licensee is found to have engaged in unfair or deceptive practices, they may be subject to a fine and possible license suspension, as determined by the North Carolina Real Estate Commission.
19. D — The Recovery Fund is used to reimburse consumers who have obtained an unsatisfied judgment against a licensee for fraud or misrepresentation.
20. A — The North Carolina State Fair Housing Act provides additional fair housing protections beyond those provided by the federal Fair Housing Act.
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