North Carolina Real Estate License Laws and NCREC Rules- Appendix A

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Terms in this set (42)
1. Practice Law
2. Fine licensee for violations of license law or NCREC rules
3. Declare contracts void
4. Determine compensation charged by licensees or brokerage firm
5. Draft or prescribe real estate contract forms
6. Act as a board of arbitration
7. Order brokers to reimburse trust funds or to reimburse buyers or sellers for losses
Can the court fine or imprison a licensee?Yes, but cannot revoke a real estate license. It can only recommend action3 ways paying consideration to any person in violation of the law:1. May not pay any compensation to any unlicensed person other than a principal to the transaction 2. May pay referral fees to other active licensees within the state, but may not pay inactive licensees 3. Fees to active out of state licensees acceptable, but licensees must not be involved in the transaction in NC where they are not licensedWhen is the latest a broker could deliver contracts or closing statements?5 daysA provisional broker is not allowed to -1. accept a commission from anyone other than the BIC or 2. represent any broker other than the bic without prior written permissionBasic requirements for becoming a brokerUS citizen, a noncitizen national, or a qualified alien under federal law. Not required to be a resident of NCA license is required for any person or business entity who for compensation does any of the following:1. List 2. Leases 3. Buys 4. Exchanges 5. Auctions 6. Negotiates 7. Sells real property for others (LLBEANS for compensation for others)A license is NOT required for any of the following1. Owners of property dealing for themselves 2. Mere crier of sales at an auction 3. Person acting as attorney in fact under a power of attorney 4. Lawyers in the regular course of their law practice (must have a license if practicing re) 5. Real estate appraiser 6. Mortgage banker or anyone who negotiates or provides real estate financing 7. Agent or fiduciary acting as any of the following: a)Trustee or receiver in bankruptcy, trustee in a deed of trust, guardian of an estate, or any person under court order 8. Person engaged in buying, leasing, or selling their OWN real estate (not for others) 9. W2 employee of a property manager brokera license that may be used to engage in brokerage activitiesactive licensea license that is current, but cannot be used to engaged in brokerage activityinactive licenseno license, a broker who failed to pay renewal fee on or before June 30thexpired licenseprovisional broker requirements1. Successful completion of 75 hours of pre-license work 2. Passed the state license exam 3. Submitted a background checkWhat are the post-licensing requirements?90 hours within three years of license issuance Must complete one course prior to each of the first 3 license anniversary dates to maintain active status If all post licensing education is not completed by 3rd license issuance anniversary, the license will be put on inactive status until all education deficiencies are satisfied.Can a provisional broker accept commissions or fees from anyone other than supervising BIC?No!BIC requirements1. Must have minimum of two years of full time active experience within last five years, 2. Must complete 12 hour BIC course within 120 days of designation as BIC, 3. Must notify NCREC within 10 days of any change of address or position 4. Take four hour BIC course for CE every yearBIC responsibilities:1. Supervise all licensed brokers 2. Ensure that license pocket cards of provisional brokers and and brokers are carried at all times 3. Notifying NCREC of any change in business address or trade name and registration of trade names 4. Making sure all brokers licensed with the firm have read and understood written office policy 5. Comply with agency rules dealing with advertising, trust accounts, and maintenance and retention of recordsCan a broker be the broker in charge for more than one location?No! Only if one more than one real estate firm occupies same physical space and same mailing address, then one broker may serve as bic for multiple firms.An individual broker practicing alone must declare as BIC if -1. Hiring Staff 2. Holding Trust Funds 3. Promoting brokerage services in any manner, including oral solicitation of brokerage clients and business cardsT/F All licenses must physically carry their pocket cards while engaging in any brokerage activityTrueT/F Every licensed real estate entity or firm does not have to display its license certificate in each officeFalseWhen do all NC real estate licenses expire?June 30thHow do you keep your license on current status?By paying renewal fee (If you don't pay it, you become EXPIRED, not inactive)Do inactive licenses have to be renewed annually?Yes!When do active brokers have to complete continuing education by?June 10thA broker who fails to complete CE requirements will have his license placed on ____ until education requirements fulfilled.inactive statusWhen do CE requirements begin?After second license renewalWho is in charge of verifying licensees have completed education requirements?BICWhat's the maximum CE you may need to correct an education deficiency before reactivating?16 hoursT/F Inactive licensees may not practice real estate or receive any compensation, including referral fees.True!!When should you notify the NCREC of any change in name or address?Within 10 days3 Advertising Restrictions:1. A provisional broker may not advertise without the consent of their BIC and must include the name of their BIC or real estate company in all advertising. 2. All advertising must clearly indicate the ad is being placed by a broker or brokerage firm. Public must know they are contacting a broker 3. Broker may not advertise or display signage for lease or sale without the owner's WRITTEN consentUnlicensed assistants and salaried employees may not:1. Show property 2. Negotiate any contract including sales, employment, or management contracts 3. Offer opinions, advice, explanations, or interpretationsUnlicensed assistants and salaried employees may under supervision:1. receive and forward calls to broker 2. submit and change listing info in MLS 3. perform routine administrative tasks 4. If working in property management, show rental units and complete preprinted lease forms.