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Terms in this set (115)
Broker in Charge
2 yers experience or equivalent as a full time broker or provisional broker eithin previous five years or education equivalent to the experience requirement; complete 12 hour bic course within 120 days; complete specially designated bic CE elective
75 hour Prelicense course within 3 years prior to application as provisional broker and complete 90 hour post licensing course within 3 years; both the 75 hour and 90 hour courses are only available live; must complete 30 hour component of post licensing requirement each year by the license anniversary date in order to remain active
Must have 8 hours by June 10th each year which consists of 4 hours general update course and 4 hours of approved elective course; licensee bears responsibility for providing evidence of completion; CE is not required to renew an inactive license; CE is required to activate an inactive license.
Activities requiring a license
Listing; selling; leasing; property management; auctioning; business brokerage; referring if done for compensation; may not pay finders fees to unlicensed parties
Limited nonresident commercial broker
Must hang license with NC firm; limited to commercial brokerage; must state identity in all advertising, no blind ads
Exemptions from licensure
Property owners selling own property; attorneys in fact; attorneys at law if in normal course of providing legal services; attorneys may not broker; receivers acting under court order; trustees acting under a trust agreement or will; certain salaried employees of broker-property managers
General administrative tasks; can show property and use pre printed lease forms; cannot negotiate
Purpose is to protect general public in dealing with licensees; in charge of license law administration and registering time share projects;managing Prelicense and CE education; educating public and licensees about real estate; regulating business activities of licensees; disciplining violators of license law; cannot regulate compensation, nor arbitrate commission disputes
Converting inactive to active brokers license
Apply, confirm CE completion- broker is active upon delivery or mailing; if no acknowledgement of receipt by NCREC, agent must stop practicing.
Converting inactive to active firm license
Make application; the principal broker just also be active
License reinstatement- expired 6 months or less
Apply; pay fees; prove CE completion; have BIC supervision
License reinstatement- Expired 6 months to 5 years
Apply; pay fee; demonstrate moral character; may need to retake exam or courses
License reinstatement- Expired over 5 years
Treated as new applicant
Apply; pay fees; demonstrate moral character; complete education
At the end of term, make application; pay fees; demonstrate moral character; complete education
License is retired at end of suspension of CE is current and licensee has BIC supervision
Can only manage one office at a time; retain licenses of all brokers in office under their supervision; notify commission of status changes; proper advertising; proper trust accounting; proper record keeping; proper provisional broker supervision; proper agency and disclosure practice in office; stipulates what type of agency will be conducted
9 in total; 7 appointed by the governor; 3 must be licensed and 2 public members not involved in real estate; commissioners serve 3 year terms.
NCREC disciplinary authority
Can reprimand, censure, and suspend or revoke licenses; can take you to court; not permitted to fine licensees unless the infraction is in violation of time share laws
Change of Name/Address to NCREC
Must be reported within 10 days to NCREC
Reporting Criminal Convictions
Must report within 60 days
Requirements for agency contracts
Must be in writing; must have definite expiration date; selling agent must list licensees license number
Oral buyer agency
Must be in writing before offer is made, non exclusive and open ended with no expiration date
Must give buyers and sellers pamphlet "working with real estate agents" upon first substantial or within 3 days following first substantial contact
Listing agents disclosure to buyer
Written disclosure upon first substantial contact
Buyer agents disclosure to seller
Upon initial contact to seller or listing agent; must confirm in writing upon delivery of an offer
May not represent 2nd party without written permission; obtain permission at formation of relationship in writing for listing; firm must disclose dual agency; may not advocate for one party over another
BIC and Provisional Broker under Dual Agency
Tenant Agency Agreements
Must be in writing prior to making an offer to lease
Exemptions to Agency Disclosure
Agents representing sellers in auctions
With prior express approval of both parties, BIC may designate a seller agent and buyer agent; dual agent may not disclose price, motivation or other confidential information.
Ads must identify the brokerage name; provisional broker ads must have consent of broker and identify brokers firm name
Delivery of Instruments
Agents must provide parties with copy of any instrument at point of execution or within 5 days; broker is held responsible for accuracy and delivery of the closing statement at closing or within 5 days following closing; documents must be delivered immediately, but in no event later than 5 days.
Records must be retained for 3 years following closing or termination of property management agreement
Drafting legal instruments
Brokers may not draft legal documents; agent should refer client to an attorney; client may draft changes in own handwriting; licensees may fill in blanks of preprinted forms when authorized; licensees may use electronic forms; agents cannot draft or complete deeds; contract with electronic signatures are fully enforceable.
Broker Price Opinions
Only a full broker can perform for. No brokerage client for a fee as long as the BPO is in writing and contains all contents required by law.
All money must be deposited within 3 days. Funds must be held in an insured institution.
Trust Account Record Keeping
Bank Statements; cancelled checks; deposit tickets; payment record sheet; speedster ledger for each transaction; journal or check stubs; copies of contracts; closing statements; property management statements; covenants by law; invoices bills and contracts paid. Records must be sufficient to leave an audit trail. Must be retained for 3 years.
Disclosure of Offers
If one of the offering parties is notified of the existence of a competing offer, all offering parties must receive the same notice. More than one offer is not a material fact.
Specified in listing agreement. Broker must be actively licensed, employed under principal with valid written agreement and procure a ready willing and able buyer. NC brokers must be paid commission from their broker, not principal. Must disclose and compensation, incentive, bonus, or other consideration to the principal and must be confirmed in writing.
Public Offering Statement
Document all prospective time share purchasers must revive before signing a sales contract. Must disclose all material facts about the property.
Paid by seller and based on the sales price of the property. $1 for every $500 of consideration. Round sales price to nearest $500 and divide by 500.
Lowest part of construction
3 major types of foundations in NC
Crawl space; basement; concrete slab
Highest point of construction
Insulation value of materials. Higher the R value, the more resistant the material is to transfer heat.
Certificate of Occupncy
Issues when the construction has been completed in a safe satisfactory manner.
NC contractors license
Require to construct a building for others that costs $30,000 or more.
Sill, floor joists, girders, and subfloor
Studs, sole plate, top plate, and headers
Ceiling joists, rafters, ridge board, eaves, fascia board, soffit and frieze board
Set minimum safety standards for construction
Most expensive to build.
Two story homes
Most affordable to build
Ranch; split level home; and two story homes
A licensee cannot be a designated agent representing the buyer if
The agent has already received confidential information from the seller in the transaction
Comparative Market Analysis
A report by a real estate broker of market statistics, but it not an appraisal. It is used to guide probably sales price decisions by seller and buyer clients; it is a client level service. A CMA should declare a range of probably sales price whereas an appraisal delivers specific appraised value.
NC Fair Housing Act of 1983
Prohibits same discriminatory activities as Federal Fair Housing Laws. Private owners selling their home with or without a broker are not exempt.
Exemptions to NC Fair Housing Act of 1983
Owners renting a room within owner occupied home; rentals of a unit in a 1-4 unit dwelling if owner or family member lives in a unit; rental of rooms in a single sex dormitory.
Violations of NC Fair Housing Act
Must file complaint with NC Human Relations Commission
Exempt properties from NC Taxation
Real property owned by a non profit Corp or association exclusively held and used by its owner for educational and scientific purposes as a protected natural area; property that is used for recycling; public parks and charitable organizations
Government Survey System
Not used in NC
The sale of a liened property can be forced without a foreclosure suit due to the power of sale clause in the trust deed.
Requires a foreclosure suit to force sale
Lender obtains title directly by court order and not practiced in NC.
Homestead Tax Exclusion
Applies to people 65 years of age or older or totally disabled
Protects and preserves the states coastal and estuary regions
Vacation Rental Act
Stipulates uniform rules for short term rentals; leases must be in writing; advance rent payments must be escrowed; rents must be refunded if uninhabitable; tenants must maintain units; provides for expedited evictions.
Who is responsible for providing a time share purchaser a public offering statement
The time share developer
Who is responsible for keeping accurate records of trust monies, time share sales and rentals, and registration of a time share project
The project broker
Ad Valorem and Special Assessments
Valid for 10 years and have priority over all other liens.
Outside brokers acting as subs gents assisting a listing agent in procuring an customer
All obligations and promises must be performed and the transaction closed.
Earnest Money and Contracts
If earnest money is agreed to and not received, there is no valid contract.
Once a real estate contract is signed by the principal parties, the buyer has what kind of interest
Equitable Title; Legal title not provided until payment of the contract price
Capital Gains and Taxation
Capitals gains up to 500,000 for married couples and 250,000 for single people are exempt if they have lived in the property for 2 of the last 5 years. Exclusion only available once every 2 years. Doesn't apply to vacation homes or secondary residences
Agency relationship is defined by
The laws of agency, or in some states, by statute
Residential Rental Agreements Act
Act governs NC landlord tenant relations; purpose is to ensure all units are safe fit and habitable; obligations are mutually dependent; if unhabilitability is not corrected, tenant may self evict without consequences but must vacate the premises. Landlord must obtain a court ordered eviction or summary ejectment
NC Tenant Security Deposit Act
Governs handling and maximum amounts of rental deposits; 2 weeks of week to week, one and half months if month to month; 2 months deposit of more than month to month; deposits must be placed in a trust account; deposit is usable for unpaid rent, damage, early departure, unpaid bills, or re-renting if evicted. Must distinguish damage from normal wear and tear
Offer to Purchase Contract must contain
Names of parties; legal description; personal property included; price and payment method; financing amount and terms; cost and terms; deposit, escrow agent, acknowledgment, criteria for disbursement; buyers general intended use and that such use is not prohibited; signature of buyer and seller; date of offer and acceptance; prorated items; identity of each agent and the girl they represent
First substantial contact
Occurs when conversation between and broker and consumer shifts from facts about the property to possible confidential information about the consumers needs, wishes and abilities or when a fiduciary relationship is formed.
Working with Real Estate Agents
Must be given no later than first substantial contact. Contains information on the various agency relationships.
Sellers Agents working with a prospective buyer must disclose in writing at first substantial contact the agency status of the representing seller
Oral Buyer Agency
All are non exclusive. Must be entered into a written buyer agency agreement no later than the time the first offer to purchase is presented.
Do not need a firm license
If the homeseller elects to make no representation regarding the condition of a given property, the homeseller is absolved of the duty to disclose a defect of that item.
Broker representing owners association
Broker may not begin representing until they have obtained a written agreement
Provisional Broker Advertising
Must have their brokers and the principals consent and identify the name of the broker or firm in the ad.
Listing agreements must have a specific termination date
True; the agreement must terminate at a specific time . No exceptions
Required Provision in an Agency Agreement
Compliance with the NC Fair Housing Act
A licensee shall not recieve, either directly or indirectly, any commission, rebate or other valuable consideration of more than nominal value for services which the licensee recommends, procures or arranges relating to real estate transaction for any party without full disclosure to such party prior to receiving the fee.
Broker In Charge
No broker shall be broker in charge of more than one office at a time. If the girl shares office space with one or more other firms, one broker may serve as broker in charge at each firm at that location. No office shall have more than one designated BIC
NC Residential Agreements Act- Tenant Responsibility
Maintaining the property in clean, safe, and I damaged condition is the responsibility of the tenant.
Must be in writing from the time of its formation regardless of the type of listing (open, exclusive agency, exclusive right to sell). Doesn't need to be on a pre-printed form approved by NCREC.
Provision Broker leaves firm
Must notify NCREC of the termination within 10 days following her last day
Interest Bearing Trust Account
A broker may maintain provided that the principals approve of the account and agree in writing on who will receive the interest.
Completion of Deeds and Deeds of Trust with Licensees
Licensees may not draft or fill in the blanks of these printed forms for others
Closing Statement Delivery
Must be delivered no later than 5 days after closing
Must never share compensation with an unlicensed person or entity for any acts performed in NC for which licensure by the commission is required
A broker must maintain a trust account if they handle the funds of others. Funds must be used for their designated purpose. Cannot use earnest money for repairs etc.
Date of Delivery
Written agency agreements, contracts, offers, leases. Or options must be delivered within 5 days and no later.
If the qualifying broker resigns, the firms real estate license reverts to an inactive status.
Educational Requirement to become BIC
Complete 12 hour broker in charge course within 3 years prior to or within 120 days following designation
Removing Provisional Status
Complete 90 hours post licensing requirement within the prescribed period of time
Converting Inactive to Active license
Submit renewal fee to NCREC
NC Uniform Building Code
Provides building standards for local building inspectors to certify properties for occupancy.
Resale of Condos
Must give the buyer prospects a statement of monthly fees and assessments.
Power of Sale Clause
A non judicial foreclosure occurs the sale of liened property can be forced without a foreclosure suit.
Requires a foreclosure suit to force sale
Lender obtains title directly by court order. Not practiced in NC
Residential Rental Agreements Act
Regulates the rights, obligations, and remedies for residential landlords and tenants in NC.
Damage; defacement; or removal of any property inside a dwelling unit in the tenants exclusive control unless the damage was due to ordinary wear and tear, acts of the landlord, defective products supplied, acts of third parties not invitees of the tenant.
Remove provisional status
Complete 90 hour post licensing not requirement within the prescribed period of time
Vacation Rental Act
Applies to landlords and brokers of vacation properties
Non Resident Licensee Continuing Education Requirement
May take the 4 hour general update course and an elective or complete two approved 4 hour electives
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