Real Estate NCREC-Broker-N - NC Real Estate Broker National

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.

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Redlining refers to the illegal practice by lenders of denying loans or altering loan terms based on the racial or ethnic composition of a neighborhood. This violates federal fair housing laws and is discriminatory in nature. Blockbusting involves inducing sellers to sell by suggesting that a minority group is moving in; steering involves directing buyers to or from neighborhoods based on race; boycotting is an antitrust violation. Therefore, C is the correct answer.

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North Carolina License Law and Rules state that a buyer’s agent must disclose their agency statusat initial contactwith the seller or the seller’s agent. The statute explicitly requires agency disclosure at the earliest interaction. Thus,option Ais correct.

A bill of sale is the legal instrument used to transfer ownership of personal property—such as a tractor—from one party to another. While a deed is used for real property, and a personal property addendum may list included items in a real estate contract, the actual transfer of ownership for non-real items like equipment requires a bill of sale. Therefore, the correct answer is D.

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Commingling is the illegal act of mixing a client’s funds—such as earnest money—with the broker’s personal or business funds. North Carolina law strictly prohibits brokers from depositing trust money (like earnest deposits) into the firm’s general operating account. In this case, the broker used the funds to pay rent, which could also constitute conversion (intentional misuse). But since the question specifically addresses the deposit, the correct answer is B – commingling.

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Under both federal and North Carolina law, individuals who believe they have experienced housing discrimination must file a complaint within one year of the alleged act to seek administrative remedies through the North Carolina Human Relations Commission or HUD. Discrimination based on sexual orientation is protected under federal fair housing law via interpretation of “sex” as a protected class. Therefore, the correct answer is C.

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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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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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The FHA (Federal Housing Administration) does not lend money directly to borrowers. Instead, FHA-insured loans are funded by approved private lenders such as banks, mortgage companies, or credit unions. The FHA insures the loan to protect the lender from default risk. HUD oversees the FHA but does not provide the funds. Fannie Mae is part of the secondary market. Therefore, the correct answer is A.

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A slab-on-grade foundation is a flat concrete slab poured directly on the ground, often used in warmer climates where ground freezing is not an issue. It supports the building structure directly and does not include a crawl space or basement. Pier and beam and post and beam refer to elevated structures, while platform construction refers to framing, not the foundation. Therefore, the correct answer is D.

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