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North Carolina Real Estate Commission NC Real Estate Broker National Sample Questions (Q21-Q26):

NEW QUESTION # 21
Which is MOST likely to be an example of an acceptable practice under the provisions of the federal Real Estate Settlement Procedures Act (RESPA) related to kickbacks?

A. A mortgage company includes a link to a real estate brokerage firm's website on its home page in exchange for the brokerage sending clients their way.
B. A title company buys an ad in the local newspaper every month for the real estate brokerage firm that sends the title company the most referrals.
C. A home inspector gives a real estate broker tickets to the Super Bowl to thank the broker for the business they sent to the inspector this year.
D. A real estate brokerage firm allows a title company to use the brokerage's downtown office to conduct closings as a convenience to downtown clients.

Answer: D

Explanation:
RESPA prohibits giving or receiving anything of value in exchange for referrals related to settlement services.
However, a title company using space provided by a brokerage (without compensation tied to referrals) for mutual client convenience may be permitted as long as fair market value is paid (if rent is involved) and there is no requirement or agreement for referrals. The other choices involve direct value exchange for referrals, which are prohibited. Correct answer: A.
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NEW QUESTION # 22
Why does the North Carolina Conner Act require deeds to be recorded?

A. To provide constructive notice of the transfer
B. To provide actual notice to all parties involved
C. To ensure the validity of the deed
D. To comply with the statute of frauds

Answer: A

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 # 23
A buyer and a seller have both signed the NCAR/NCBA Offer to Purchase and Contract (Standard Form 2-T), creating a binding sales agreement. The buyer's loan is denied during the due diligence period, and they provide the proper notice to terminate the transaction. In this scenario, the buyer can receive:

A. a refund of both the due diligence fee and the earnest money deposit.
B. no refund because the buyer terminated a valid contract.
C. a refund of the due diligence fee only.
D. a refund of the earnest money deposit only.

Answer: D

Explanation:
Under the NCAR/NCBA Standard Form 2-T, if the buyer terminates the contract during the due diligence period and provides written notice, they are entitled to a full refund of the earnest money deposit. However, the due diligence fee is non-refundable unless the seller breaches the contract. Therefore, the correct answer is B.

NEW QUESTION # 24
A real estate broker has assisted an investor with the purchase of a number of commercial properties. The investor will be out of the country for part of the year and asks the broker to manage all aspects of those properties during that time, including advertising and leasing. The real estate broker will be considered a(n):

A. general agent
B. universal agent
C. special agent
D. ostensible agent

Answer: A

Explanation:
A general agent is authorized to handle a broad range of matters for a client, such as property management or handling day-to-day operations of a business or estate. In this case, the broker is managing all aspects of the investor's real estate portfolio, which qualifies as a general agency relationship. A special agent performs only specific tasks (like listing or selling a single property), and a universal agent has unlimited authority, which is rare. Therefore, the correct answer is B.
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NEW QUESTION # 25
Which statement about acknowledging a deed is TRUE?

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

Answer: B

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 # 26
......

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