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

Question 1

[Parties and Property Description]

A homeowner signs a contract with a broker stating that the homeowner will pay the broker a commission if the broker finds a ready, willing, and able buyer for the house in the next 60 days. What is the BEST way to describe this contract as of the day they sign it?

AExpress and executed

BExpress and executory

CImplied and executed

DImplied and executory

Answer : B

This is an express contract because terms are clearly stated, and executory because performance (finding a buyer) is yet to occur. It is not executed until the broker succeeds. Thus, it's an express, executory contract as defined in contract law and Broker N study materials.

Question 2

[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 3

[Marketing and Advertising Authorization]

Josh is a new North Carolina broker at Atlantic Realty. He just got his first listing and wrote the following ad: "Charming seaside cottage. Call Broker Josh at 555-9876 for an appointment."

Which statement about this ad copy is TRUE?

AThe ad must include an address for the property.

BThe ad must include Josh's email address.

CThe ad is acceptable as written.

DThis is an example of an illegal blind ad.

Answer : D

According to NCREC advertising rules, any advertisement by a broker must clearly identify the firm with which the broker is affiliated. Failing to do so results in what is considered a ''blind ad,'' which is prohibited. Josh's ad does not include his brokerage firm's name---Atlantic Realty---so it is a blind ad. Therefore, the correct answer is D.

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Question 4

[Offers and Negotiations -- Statute of Frauds]

The statute of frauds requires contracts for the sale of real property to be:

Afully executed before the expiration date.

Bin writing to be enforceable.

Cprepared by an attorney.

Drecorded in the same jurisdiction as the property.

Answer : B

The Statute of Frauds is a legal doctrine that requires certain types of contracts---including contracts for the sale of real property---to be in writing to be enforceable in a court of law. Oral agreements for real estate transactions are not enforceable under this law in North Carolina. There is no requirement that contracts be drafted by attorneys, executed by a certain date, or recorded. Therefore, the correct answer is B.

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Question 5

[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 6

[Broker's Agency Relationships and Disclosures -- Buyer Agency]

In North Carolina, which type of buyer agency agreement may be oral or written?

AExclusive buyer agency agreement for a fixed period of time

BNonexclusive buyer agency agreement for a fixed period of time

CExclusive buyer agency agreement that does not bind the buyer for a fixed period of time

DNonexclusive buyer agency agreement that does not bind the buyer for a fixed period of time

Answer : D

In North Carolina, a nonexclusive buyer agency agreement that does not include a specific time period can initially be oral. However, before writing or presenting any offers on behalf of the buyer, the agreement must be put into writing and signed. Exclusive buyer agency agreements and any agreement that includes a fixed term must be in writing from the beginning. Therefore, the correct answer is D.

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Question 7

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.

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