Real Estate Licensing NCREC-Broker-N Exam Questions Instant Access

Question 1

If a seller whose property is currently listed with another company initiates a conversation with a broker about the possibility of the broker becoming their new listing agent, the broker:

Amay discuss the terms of a possible listing agreement that would begin after the current listing ends.

Bmay not discuss the terms of any possible future listing agreement.

Cmay suggest that the seller terminate the current listing agreement early.

Dmust advise the seller to contact an attorney.

Answer : A

Under the NCREC Rules and Code of Ethics, a broker may not interfere with another firm's existing exclusive listing agreement. However, if a seller independently initiates a conversation, a broker is allowed to discuss the terms of a future agreement --- but that agreement must begin only after the current listing expires. The broker must not suggest early termination or breach of contract. Therefore, option A accurately reflects what is legally and ethically permissible.

Question 2

[Compliance with Laws and Regulations -- North Carolina Timeshare Act]

Under the North Carolina Timeshare Act, a timeshare developer must allow a buyer to cancel a purchase contract without penalty for how long after signing the contract?

A3 days

B5 days

C10 days

DUnder the law, there is no right of cancellation

Answer : B

According to the North Carolina Timeshare Act, a purchaser of a timeshare has the right to cancel the purchase without penalty within five (5) calendar days after execution of the contract. This right of rescission is non-waivable and must be disclosed in the contract. The cancellation does not require a reason and must be honored fully. Therefore, the correct answer is B.

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Question 3

[Listing Price and Terms -- Personal Property Transfer]

The buyer of a farm wants to separately purchase a tractor from the seller. What document would MOST likely be required at closing to transfer ownership of the tractor?

ADeed

BPurchase agreement

CPersonal property addendum

DBill of sale

Answer : D

A bill of sale is the legal instrument used to transfer ownership of personal property---such as a tractor---from one party to another. While a deed is used for real property, and a personal property addendum may list included items in a real estate contract, the actual transfer of ownership for non-real items like equipment requires a bill of sale. Therefore, the correct answer is D.

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Question 4

[Broker's Authority and Duties -- Trust Account Requirements]

In North Carolina, an earnest money deposit that is paid by check must be deposited into a trust account no later than:

A3 banking days after receipt.

B3 banking days after acceptance of the offer.

C5 banking days after receipt.

D5 banking days after acceptance of the offer.

Answer : B

According to North Carolina Real Estate Commission rules, if an earnest money deposit is received with an offer and held by the broker, it must be deposited in the trust account no later than 3 banking days after the broker has received notice of contract acceptance (i.e., when the offer becomes a binding contract). Therefore, the correct answer is B.

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Question 5

Which statement about an option contract is TRUE?

AThe buyer is obligated to purchase the property within the indicated time frame.

BThe seller is obligated to sell the property if the buyer chooses to exercise the option.

CAny money paid with an option must be refunded if the option is not exercised.

DAn option contract does not require consideration to be enforceable.

Answer : B

An option contract gives the buyer (optionee) the exclusive right, but not the obligation, to purchase a property at a predetermined price within a specified time. The seller (optionor), however, is bound by the terms of the contract and must sell if the buyer exercises the option. Consideration (often a non-refundable option fee) is required to make the option enforceable. Therefore, the seller is obligated to sell if the buyer chooses to exercise the option, making statement B true.

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Question 6

[Compliance with Laws and Regulations -- FHA Financing]

When a borrower obtains an FHA-insured loan, the source of the funds is MOST likely to be:

Aan approved lender

Bthe Department of Housing and Urban Development (HUD)

CFannie Mae

Dthe Federal Housing Administration (FHA)

Answer : A

The FHA (Federal Housing Administration) does not lend money directly to borrowers. Instead, FHA-insured loans are funded by approved private lenders such as banks, mortgage companies, or credit unions. The FHA insures the loan to protect the lender from default risk. HUD oversees the FHA but does not provide the funds. Fannie Mae is part of the secondary market. Therefore, the correct answer is A.

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Question 7

[Broker's Authority and Duties -- Transaction Documentation]

According to the North Carolina Real Estate Commission Rules, a broker must deliver a copy of any signed purchase agreement to their client or customer within ____ of receipt.

A24 hours

B2 days

C3 days

D4 days

Answer : A

NCREC rules require that brokers deliver a copy of any executed (signed) document to all parties within 3 calendar days. However, a stricter rule applies to offers and contracts: any signed agency agreement or sales contract must be delivered within 3 days, and any executed offer must be delivered 'immediately, but in no case later than 3 days.' Best practice---and NCREC recommendation---is within 24 hours. Therefore, the most accurate and safe answer is A.

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Real Estate Licensing North Carolina Real Estate Broker National NCREC-Broker-N Exam Questions