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North Carolina Real Estate Commission NC Real Estate Broker National Sample Questions (Q20-Q25):

NEW QUESTION # 20
A North Carolina broker just received an offer to purchase a home they have listed. According to the North Carolina Real Estate License Law and the Real Estate Commission Rules, the broker must present the offer to the seller immediately but no later than:

A. 3 business days of receipt.
B. 24 hours of receipt.
C. 1 business day of receipt.
D. 3 calendar days of receipt.

Answer: D

Explanation:
According to the North Carolina Real Estate Commission Rules, a broker must present all offers
"immediately, but in no event later than three calendar days from the date of receipt." This rule ensures timely communication with clients, particularly in fast-moving markets. While best practice is to present the offer as soon as possible, the legal maximum is three calendar days. Therefore, the correct answer is D.
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NEW QUESTION # 21
When submitting an offer, a buyer handed their broker an earnest money deposit in cash. To comply with the North Carolina Real Estate Commission Rules, what must the broker do?

A. Deposit the cash into the brokerage trust account within three banking days of receipt
B. Ensure the cash is locked in a safe place until the offer is accepted
C. Turn the money over to the listing broker within 24 hours of receipt
D. Not accept the cash and ask the buyer to write a check instead

Answer: A

Explanation:
Under NCREC rules, a broker must deposit any earnest money received (including cash) into the firm's trust account within three banking days of receipt if the offer has been accepted. If the offer has not yet been accepted, the funds must be safeguarded and then deposited within three banking days following acceptance.
Cash must be treated with particular care, and a detailed receipt should be provided. Therefore, the correct answer is C.
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NEW QUESTION # 22
What duty does a North Carolina real estate broker have related to material facts?

A. An affirmative duty to discover and disclose material facts to their clients only
B. A duty to disclose known material facts to their clients only but no affirmative duty to discover material facts
C. A duty to disclose known material facts to all parties but no affirmative duty to discover material facts
D. An affirmative duty to discover and disclose material facts to all parties

Answer: D

Explanation:
NC brokers are bound by an affirmative duty to both discover and disclose material facts to all parties in a transaction, not just their clients. This includes facts they know or should reasonably know, such as structural defects, zoning violations, or environmental issues. This duty exists regardless of whom the broker represents.
Therefore, option A is correct.
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NEW QUESTION # 23
The monthly rent for each unit in a six-unit office building is $2,500. The annual vacancy rate averages 4%.
The owner collects $3,000 per year in advertising fees. Annual operating expenses are $40,000. The annual debt service is $25,000. What is the net operating income of this property?

A. $110,800
B. $150,800
C. $132,680
D. $135,800

Answer: D

Explanation:
Step 1: Calculate Gross Scheduled Income
6 units × $2,500/month × 12 months = $180,000
Step 2: Deduct Vacancy Loss (4%)
$180,000 × 0.04 = $7,200
Effective Gross Income = $180,000 # $7,200 = $172,800
Step 3: Add Other Income
$172,800 + $3,000 (advertising fees) = $175,800
Step 4: Subtract Operating Expenses (ignore debt service)
$175,800 # $40,000 = $135,800
Note: Net Operating Income (NOI) excludes debt service.
Correct answer: C

NEW QUESTION # 24
Which statement about acknowledging a deed is TRUE?

A. A deed must be acknowledged to be recorded.
B. Acknowledging a deed requires the signature of the listing agent.
C. A deed must be acknowledged or the transaction cannot close.
D. A deed must be acknowledged to be valid.

Answer: A

Explanation:
In North Carolina, a deed must be in writing, signed by the grantor, and delivered to the grantee to be valid.
However, acknowledgment (notarization) is not required for validity-but it is required for the deed to be recorded at the county Register of Deeds. Recording provides constructive notice of ownership. Therefore, the correct answer is C.
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NEW QUESTION # 25
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