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Post Licensing 303 - NC Law, Rules, and Legal Concepts -exam questions with correct answers
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Post Licensing 303 - NC Law, Rules, and Legal Concepts -exam questions with correct answers
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Post Licensing 303 - NC Law, Rules, andLegal Concepts -exam questions with
correct answers
You will be presented with a series of scenarios. Indicate whether the activities performed are
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allowed (Deal) or not (No Deal). We will then walk through the scenarios together.
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An LLC homebuilder building in several subdivisions has W-2 employees in model homes in
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each subdivision who show available properties, discuss design options, answer consumers'
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questions, negotiate sales contracts, accept deposits, and otherwise service the transaction
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from beginning to end. - ANSWER: ➡ Deal
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The believed owners of 40 acres of land that has passed by intestate succession from the two
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prior owners hire an attorney to confirm title, which he does.
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The attorney discovers that the tract is landlocked due to an out-conveyance by a prior owner.
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The attorney negotiates easement rights with an adjoining property owner, records the
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easement, and is paid for his time based on his hourly rate. - ANSWER: ➡ Deal
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The owners now ask the attorney, having resolved the title and access issues, whether he know
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someone who would be interested in purchasing the property?
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The attorney, on the owners' behalf, contacts two different developers, both of whom compete
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for the property.
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The owners accept an offer, the transaction closes, and pay the attorney 2% of the purchase
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price for his services. - ANSWER: ➡ No Deal
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Sellers are under contract to sell but must begin their new jobs in another state two weeks
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prior to settlement and won't be able to attend.
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The sellers sign a power of attorney giving the wife's unlicensed brother authority to sign the
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deed, the settlement statement, and any other documents required at closing. - ANSWER: ➡
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Deal
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,A fully competent owner of several rental properties doesn't like to be burdened with "details"
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and persuades her tax preparer to handle the leasing and rent collections for her rental
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properties, since he reports all income and expenses when he prepares her taxes each year.
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The tax preparer is authorized to withhold 8% of all rents collected as his fee. - ANSWER: ➡
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A fully competent owner of several rental properties doesn't like to be burdened with "details"
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and persuades her tax preparer to handle the leasing and rent collections for her rental
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properties, since he reports all income and expenses when he prepares her taxes each year.
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The tax preparer is authorized to withhold 8% of all rents collected as his fee. - ANSWER: ➡ No
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Deal
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Son lives rent-free in one-half of a duplex owned by his parents. He mows the yard, maintains
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the property, answers repair requests, collects the monthly rent and conveys to his parents,
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and provides access to prospective tenants during transitions. - ANSWER: ➡ No Deal
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A listing agent receives a full-price offer from an unlicensed and unrepresented buyer. A
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condition of the offer is that the listing agent share $5,000 of their commission with the buyer,
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which is significantly less than what the listing company would pay a buyer agent.
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May the listing company (with the seller's consent and lender disclosure) pay the buyer
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$5000? - ANSWER: ➡ Deal
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A broker manages two 200-unit apartment complexes owned by different entities, as well as
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40 single-family homes for multiple owners. The broker hires unlicensed salaried persons to
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staff the office at each apartment complex. They show the units, accept rent applications and
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money, fill in blanks on preprinted lease forms, and create binding contracts. - ANSWER: ➡
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Deal
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The broker/property manager also hires unlicensed salaried persons to help her manage the
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40 single-family homes. They show the properties to prospective tenants, answer questions,
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do move-in/move-out and routine inspections, and can negotiate a lower rental price than
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advertised if they know the broker has accepted less in the past. - ANSWER: ➡ No Deal
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,A broker has management agreements with several corporate or LLC owners to manage multi-
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tenant retail space each entity owns. The broker hires unlicensed, but well-trained, individuals
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as W-2 employees to staff the office at each retail center. They show available space, quote
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rental prices and terms, answer questions, complete and sign preprinted lease forms, and
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oversee maintenance and repair services. - ANSWER: ➡ Deal
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Property is owned by four unlicensed individuals as tenants-in-common who agree that one of
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them will handle all marketing, showing, and negotiating of offers and will be entitled to
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receive 5% of the sales price for her efforts.
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The cotenants also agree that no offer will be binding until it is signed by all four cotenants. -
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ANSWER: ➡ Deal
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A municipal housing authority is the tenant under several long-term leases for multi-family
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dwellings and also owns several properties. It leases or subleases and manages these
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properties through regular salaried employees of the housing authority as permitted under
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NCGS Chapter 157. - ANSWER: ➡ Deal
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Adult child is appointed as the guardian for a parent who is suffering dementia and no longer
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can manage their financial affairs.
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The guardian advertises the parent's home for lease, shows it, and after carefully vetting an
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applicant enters into a written lease agreement, begins collecting the monthly rent, and uses it
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to pay any property-related expenses. - ANSWER: ➡ Deal
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A fully competent owner of several rental properties doesn't like to be burdened with "details"
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and persuades her tax preparer to handle the leasing and rent collections for her rental
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properties, since he reports all income and expenses when he prepares her taxes each year.
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The tax preparer is authorized to withhold 8% of all rents collected as his fee. - ANSWER: ➡ No
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Deal
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Of the forms of business ownership, which one is NOT an entity: - ANSWER: ➡ Sole
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proprietorship
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Entities: LLC, Partnership and Corporation g g g g
, A licensee who is responsible for an office location is a: - ANSWER: ➡ BIC
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Regarding firm licenses the following are true: - ANSWER: ➡ Failure to have a BIC with a firm
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license results in an inactive license.
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Failure to renew a firm license results in an expired license.
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Every firm license must be renewed each year by June 30th.
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All of the following is true regarding a BIC: - ANSWER: ➡ Full brokers may work for more than
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one BIC with mutual consent of all BICs.
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A BIC can only be the BIC of more than one firm provided they share the same location.
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Every real estate location must have a BIC.
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BIC and BIC eligible status can be maintained by: - ANSWER: ➡ Renewing license by June 3rd
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and taking BICUP plus one elective by June 10th.
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Regarding a BICs: - ANSWER: ➡ A BIC is responsible for an office location.
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An active real estate license is required for: - ANSWER: ➡ Providing brokerage services.
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**Selling could be FSBO and salaried employees are allowed to show units without having a
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license.
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A broker who is qualified to serve as a BIC but not currently serving as the BIC of any office
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location is: - ANSWER: ➡ BIC Eligible
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