NC Real Estate Broker National (NCREC-Broker-N) Free Practice Test

Question 1

A prospective buyer, who just moved to town from Venezuela, asks their buyer agent to show them houses only in Latino neighborhoods. If the buyer agent complies with the buyer's directions, the agent could be guilty of:

A. blockbusting

B. steering

C. redlining

D. pandering

Correct Answer: B

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Question 2

A North Carolina broker with RealtyOne is working for a buyer client to find a home. They find a home listed with RealtyTwo and submit an offer on Wednesday afternoon. The listing agent presents the offer to the seller on Thursday. The seller signs the offer with no changes and returns it to the listing agent on Thursday evening. Friday morning, the listing agent calls the RealtyOne broker and states the seller has signed and accepted the buyer's offer. The RealtyOne broker receives the signed documents on Saturday. On Sunday morning, the RealtyOne broker meets with their buyer client, informs them of the acceptance, and delivers the signed documents to them. When did the parties form a valid and binding contract?

A. Thursday when the seller signed the contract

B. Friday morning when the acceptance was communicated to the RealtyOne broker

C. Thursday evening when the seller informed the listing agent of their acceptance

D. Sunday when the buyer was informed of the acceptance and received the signed documents

Correct Answer: B

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Question 3

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

A. 5 banking days after receipt.

B. 3 banking days after acceptance of the offer.

C. 3 banking days after receipt.

D. 5 banking days after acceptance of the offer.

Correct Answer: B

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Question 4

Which of the following will an appraiser consider when appraising a property?

A. The original price paid for the property

B. The average value of all available comparables

C. A reconciliation of values if more than one appraisal method is used

D. The cost to update the subject property

Correct Answer: C

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Question 5

According to the North Carolina Good Funds Settlement Act, when can a broker expect to receive their commission following completion of a real estate transaction?

A. At the time of settlement

B. After the deed and deed of trust are recorded

C. Once the lender's funds are verified

D. Before the deed is recorded

Correct Answer: B

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Question 6

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 must disclose the offer of the gift card to Ike before he can show that property to Ike.

C. Chris does not have to tell any seller that Ike has guaranteed Chris's firm a commission of 2.5%.

D. Chris does not have to disclose to Ike that any seller is offering more than the promised 2.5% commission he agreed to.

Correct Answer: B

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Question 7

An appraiser who is appraising a duplex gathers the following information: rent, vacancy rate, mortgage loan payments, property taxes, the owner's income tax obligations, and various expenses. The appraiser also examines the same information from other similar properties in the area as well as their sales prices. To find the net operating income of the subject property, what does the appraiser need to consider?

A. None of the operating expenses

B. Owner's income tax obligations

C. Vacancy losses

D. Mortgage payments of principal and interest

Correct Answer: C

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North Carolina Real Estate Commission NC Real Estate Broker National (NCREC-Broker-N) Free Practice Test