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NCREC-Broker-N Exam Dumps For Certification Exam Preparation
NEW QUESTION # 42
Why does the North Carolina Conner Act require deeds to be recorded?
- A. To provide actual notice to all parties involved
- B. To comply with the statute of frauds
- C. To ensure the validity of the deed
- D. To provide constructive notice of the transfer
Answer: D
Explanation:
The Conner Act in North Carolina requires that certain real estate documents (including deeds, leases over 3 years, and easements) must be recorded in order to be enforceable against third parties. Recording a deed provides constructive notice to the world that an ownership transfer has occurred. Constructive notice is a legal concept meaning everyone is deemed to know the facts once the document is publicly recorded.
Therefore, the correct answer is B.
NEW QUESTION # 43
On a settlement statement, the seller's net proceeds are calculated by:
- A. subtracting closing costs from the purchase price.
- B. subtracting the buyer's credits from the seller's credits.
- C. subtracting the seller's debits from the buyer's debits.
- D. subtracting the seller's debits from the seller's credits.
Answer: D
Explanation:
The seller's net proceeds are the total credits due to the seller (such as the sale price) minus all debits (such as mortgage payoff, commissions, taxes, and other closing costs). Therefore, the formula is:
Net Proceeds = Seller's Credits # Seller's Debits.
Correct answer: D.
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NEW QUESTION # 44
What is the formula for calculating capital gain when a principal residence is sold?
- A. Adjusted Basis - Amount Realized
- B. Amount Realized - Adjusted Basis
- C. Adjusted Basis / Amount Realized
- D. Amount Realized + Adjusted Basis
Answer: B
Explanation:
Capital gain is determined by subtracting theadjusted basis(original cost plus improvements minus depreciation) from theamount realized(selling price minus selling costs). This matchesAmount Realized - Adjusted Basisas per the Broker#N Financing and Taxation section.
NEW QUESTION # 45
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?
- A. The ad is acceptable as written.
- B. The ad must include Josh's email address.
- C. This is an example of an illegal blind ad.
- D. The ad must include an address for the property.
Answer: C
Explanation:
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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NEW QUESTION # 46
North Carolina broker Chris has a buyer agency contract with Ike stating that Chris's firm will earn a 2.5% commission for finding the property Ike buys. Ike looks at three properties for which the seller is offering a
3% commission split to the selling agent, and one of the sellers is offering a $500 gift card to a selling agent as a bonus. Which statement is TRUE?
- A. Chris does not have to disclose the offer of the gift card to Ike because it is not a cash commission.
- B. Chris does not have to tell any seller that Ike has guaranteed Chris's firm a commission of 2.5%.
- C. Chris does not have to disclose to Ike that any seller is offering more than the promised 2.5% commission he agreed to.
- D. Chris must disclose the offer of the gift card to Ike before he can show that property to Ike.
Answer: D
Explanation:
According to North Carolina Real Estate Commission rules, any compensation-monetary or non-monetary- that a broker expects to receive from someone other than their client (e.g., a gift card from a seller) must be disclosed in writing before the broker shows the property. Brokers owe this duty of disclosure regardless of the form or source of the compensation. Therefore, Chris must disclose the offer of the $500 gift card before showing that home to Ike.
NEW QUESTION # 47
According to the North Carolina Real Estate Commission Rules, what must be included in a written agency agreement?
- A. The broker's license number
- B. The expiration date of the broker's license
- C. An automatic renewal clause
- D. A broker protection clause
Answer: A
Explanation:
According to 21 NCAC 58A .0104(a), a written agency agreement in North Carolina must include the broker' s license number and a definite expiration date. These are required by the Commission to ensure regulatory clarity and accountability. A broker protection clause is optional and negotiated between parties. Automatic renewal clauses are prohibited in listing agreements. Therefore, the correct and required component is the broker's license number.
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NEW QUESTION # 48
A comparable property sold for $300,000. It has a finished basement, while the subject property does not. The finished basement contributes $10,000 to value. What is the adjusted value of the comparable property?
- A. The price of the comparable property is never adjusted.
- B. $310,000
- C. $300,000
- D. $290,000
Answer: D
Explanation:
In appraisal practice, when adjusting a comparable property to reflect differences from the subject property, the adjustment is always made to the comparable. Since the comparable has a finished basement worth
$10,000 and the subject does not, we subtract $10,000 from the comparable's sale price to estimate what it would have sold for if it were more like the subject.
$300,000 # $10,000 = $290,000.
Therefore, the correct answer is A.
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NEW QUESTION # 49
A salaried employee of a North Carolina brokerage firm that practices property management must have a real estate license if they perform which task?
- A. Negotiating the amount of a security deposit
- B. Completing a preprinted lease contract
- C. Showing apartment units to prospective tenants
- D. Accepting applications for a lease
Answer: A
Explanation:
In North Carolina, salaried employees working under a licensed brokerage or property management firm may engage in certain administrative or ministerial tasks without a real estate license-such as showing rental units, collecting rent, and accepting applications. However, negotiating lease terms or the amount of a security deposit involves brokerage-level activity and requires a real estate license. Therefore, the correct answer is C.
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NEW QUESTION # 50
A property is selling for $690,000, and the seller's estimated closing expenses amount to $8,000. If the seller originally purchased the property for $410,000 and paid $3,000 in closing expenses, what is the seller's estimated profit on the sale?
- A. $269,000
- B. $291,000
- C. $275,000
- D. $285,000
Answer: A
Explanation:
Seller's estimated profit = Sale Price - Seller's Closing Costs - (Original Purchase Price + Original Closing Costs)
= $690,000 - $8,000 - ($410,000 + $3,000)
= $690,000 - $8,000 - $413,000 = $269,000
Correct answer: A
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NEW QUESTION # 51
It would be considered the unauthorized practice of law for a North Carolina real estate broker to:
- A. draft an addendum to an offer if there are any special contract provisions.
- B. modify an electronically generated preprinted form by marking a change requested by a client.
- C. refer a client to an attorney to draft an addendum if there are special contract provisions.
- D. complete a preprinted offer or sales contract form that has been drafted by an attorney.
Answer: A
Explanation:
North Carolina brokers are permitted to complete preprinted, attorney-approved forms (like Standard Form 2- T) and make handwritten changes at the direction of clients. However, they may not draft legal language or new provisions-doing so constitutes the unauthorized practice of law. Brokers must refer clients to an attorney when custom provisions or legal interpretations are needed. Therefore, the correct answer is B.
NEW QUESTION # 52
A listing brokerage firm offered a 3% commission split to any broker who could find a buyer for their
$700,000 listing. The seller agreed to pay a 7% commission. A broker from another brokerage firm found a buyer, and the seller accepted their offer of $695,000. What did the listing brokerage firm earn on this transaction?
- A. $20,850
- B. $27,800
- C. $21,000
- D. $28,000
Answer: B
Explanation:
The total commission earned was 7% of the final sales price ($695,000 × 0.07 = $48,650).
The cooperating (buyer's) broker received 3% ($695,000 × 0.03 = $20,850).
The listing brokerage firm retained the difference:
$48,650 - $20,850 = $27,800.
So, the listing firm earned $27,800 - answer C.
NEW QUESTION # 53
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. Turn the money over to the listing broker within 24 hours of receipt
- B. Deposit the cash into the brokerage trust account within three banking days of receipt
- C. Not accept the cash and ask the buyer to write a check instead
- D. Ensure the cash is locked in a safe place until the offer is accepted
Answer: B
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 # 54
A prospective buyer offers to buy a house for $415,000, with an earnest money deposit of $1,000. The seller crosses out the earnest money amount, changes it to $4,000, initials and dates the change, signs the offer, and returns it to the buyer. Which of the following statements is TRUE?
- A. The seller has rejected the original offer and made a counteroffer.
- B. Because the seller changed only the earnest money amount and not the price, the offer was accepted as soon as the seller signed it.
- C. Because the seller changed only the earnest money amount and not the price, the offer was accepted when the seller notified the buyer.
- D. If the buyer rejects the change, the seller can accept the buyer's original offer.
Answer: A
Explanation:
Any change to the terms of an offer-regardless of how small-constitutes a rejection of the original offer and the creation of a counteroffer. In this case, the seller changed the earnest money amount, which is a material term of the offer. Therefore, the original offer is void and the seller has made a counteroffer that the buyer can now accept or reject. Correct answer: D.
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NEW QUESTION # 55
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?
- A. Implied and executory
- B. Express and executed
- C. Implied and executed
- D. Express and executory
Answer: D
Explanation:
This is anexpresscontract because terms are clearly stated, andexecutorybecause performance (finding a buyer) is yet to occur. It is not executed until the broker succeeds. Thus, it's anexpress, executorycontract as defined in contract law and Broker#N study materials.
NEW QUESTION # 56
Under the provisions of the North Carolina Subdivision Streets Disclosure Law, a subdivision developer must give a prospective buyer a disclosure statement that indicates:
- A. whether the property's frontage street is public or private.
- B. whether the property's frontage street is subject to flooding.
- C. the anticipated cost of assessments for public or private streets.
- D. that the developer is responsible for maintaining private streets.
Answer: A
Explanation:
The North Carolina Subdivision Streets Disclosure Law requires developers to provide written disclosure to prospective buyers regarding whether the subdivision streets are intended to be publicly maintained (by the NCDOT or a municipality) or privately maintained. This ensures that buyers are aware of their responsibility for street upkeep if they are private. Therefore, the correct answer is A.
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NEW QUESTION # 57
A Baptist charity runs a not-for-profit senior housing community for members of its faith. A 75-year-old Hindu woman applies to lease an apartment, and her application is denied. Does she have a case for illegal discrimination under the federal Fair Housing Act?
- A. No, this is legal because religious organizations can restrict tenancy based on religion only.
- B. Yes, this is illegal because it involves religious discrimination.
- C. No, this is legal because the Fair Housing Act does not address religious discrimination.
- D. Yes, this is illegal because there are no exemptions for protected classes.
Answer: A
Explanation:
Under the federal Fair Housing Act, religious organizations may limit occupancy of their non-profit housing to persons of the same religion, provided the property is not operated commercially and there is no discrimination based on race, color, or national origin. Thus, option D is correct - the charity may lawfully restrict tenancy to members of its own faith.
NEW QUESTION # 58
Under the terms of the NCAR/NCBA Offer to Purchase and Contract (Standard Form 2-T), the settlement date can be delayed for how long before the contract is no longer enforceable and binding on all parties?
- A. 3 days
- B. 7 days
- C. 10 days
- D. 5 days
Answer: B
Explanation:
According to Paragraph 12 of the NCAR/NCBA Offer to Purchase and Contract (Form 2-T), the settlement date may be extended by up to 7 calendar days if either party is acting in good faith and is prepared to settle.
This flexibility ensures neither party is penalized for delays that are minor and in good faith, but it limits how long the contract can be extended before a material breach could occur. Therefore, the settlement date can be delayed up to 7 calendar days and still remain enforceable.
NEW QUESTION # 59
Which of the following is a key characteristic of an exclusive right to sell listing agreement?
- A. The seller can list the property with multiple brokers.
- B. The broker is guaranteed a commission if the property sells during the listing term.
- C. The broker must be the procuring cause of the sale to earn a commission.
- D. The seller does not owe a commission if they sell the property themselves.
Answer: B
Explanation:
Anexclusive right to selllisting gives one broker the sole authority to market and sell a property. The broker is entitled to a commissionno matter who procures the buyer, even if the seller finds the buyer independently during the listing period commission payment upon sale within the term-matchingoption A.
Option B is false (that applies to exclusive agency); C applies to open or exclusive-agency; and D conflicts with the exclusivity provision.
NEW QUESTION # 60
A North Carolina broker has been designated as the broker-in-charge (BIC) at a brokerage firm. This means that the broker:
- A. can appoint a second BIC to help in the office.
- B. can supervise both the main office and one or more branch offices.
- C. must be the owner of the brokerage firm.
- D. must supervise all provisional brokers in the office.
Answer: D
Explanation:
In North Carolina, theBroker#In#Charge (BIC)is responsible for supervisingall provisional brokersand ensuring they adhere to Commission rules. While a BIC may also supervise branch offices if appointed, the core statutory duty is direct supervision of licensed provisional brokers . Therefore,Option Dis the most accurate.
NEW QUESTION # 61
Which situation would be considered a material fact that a listing broker in North Carolina would be required to disclose to a prospective buyer?
- A. A previous occupant manufactured methamphetamine on the property.
- B. The current owner believes the property is haunted.
- C. A previous owner died on the property.
- D. A previous occupant had a serious illness.
Answer: A
Explanation:
According to North Carolina law, brokers are not required to disclose psychological stigmas such as death, illness, or belief in haunting. However, the manufacture of methamphetamine is a material fact due to health and safety hazards and must be disclosed. Therefore, answer B is correct.
NEW QUESTION # 62
A North Carolina broker has been practicing real estate for 10 years for a firm in Asheville. The broker just bought a home on Oak Island and would like to split their time between the mountains and the shore. Under what circumstances could the broker affiliate with two different brokers-in-charge?
- A. If the broker limits their practice to commercial transactions
- B. If the broker gets the express consent of both brokers-in-charge
- C. If the broker operates as a sole proprietorship
- D. Under no circumstances
Answer: B
Explanation:
NCREC rules allow a broker to be affiliated with more than one firm or broker-in-charge at the same time, but only with the express written consent of both BICs. This is often the case when brokers want to work in both commercial and residential markets or split their time between geographic locations. Therefore, the correct answer is A.
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NEW QUESTION # 63
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:
- A. may suggest that the seller terminate the current listing agreement early.
- B. may not discuss the terms of any possible future listing agreement.
- C. must advise the seller to contact an attorney.
- D. may discuss the terms of a possible listing agreement that would begin after the current listing ends.
Answer: D
Explanation:
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.
NEW QUESTION # 64
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