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23 terms

NC Real Estate License Law

personal flash cards for nc real estate license law
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makeup of commission
consists of nine members - 7 appointed by governor; one by Speaker of the House; one by President Pro-Tem of the Senate; 3 must be brokers in the real estate business; 2 cannot be involved directly or indirectly in the real estate business; serve 3 year staggered terms Y53
powers granted to the NC Real Estate Commission (6)
1. licensing real estate brokers in NC
2. approving schools that conduct real estate courses
3. approving instructors that teach real estate courses
4. conducting education and information programs relating to the real estate brokerage business
5. regulating the business activities of brokers in NC
6. has te power to discipline licensees who violate the license law or commission rules Y53
disciplinary actions against licensees (4)
a. reprimand - slap on the wrist
b. censure - harder slap on the wrist
c. license suspension
d. license revocation Y53
powers not granted to the NC Real Estate Commission (7)
1. cannot practice law
2. cannot declare sales contracts, listing contracts or leases void
3. cannot regulate commissions, salaries or fees charged by licensees
4. cannot fine licensees for violations of licensing law
5. cannot draft or prescribe real estate contract forms
6. cannot act as a board of arbitration
7. cannot order brokers to reimburse trust funds or to compensate buyers or sellers for losses Y54
who needs a real estate license
any person or business entity who, for compensation, Lists, Leases, Buys, Exchanges, Auctions, Negotiates, or Sells (LLBEANS) real property for other Y54
who does not need a real estate license (9)
1. an owner of property deal for him/herself
2. a crier at an auction
3. a person acting as attorney-in-fact under a power of attorney
4. a lawyer in the regular course of his/her law practice
5. a real estate appraiser
6. a mortgage banker
7. any person acting under court order
8. corporations selling/leasing/buying their own real estate
9. a salaried employee of a property manager broker Y54
active license
a license that states you are current on education, fees and are able to do business
canceled license
if a provisional broker does not complete all 90 hours of post-licensing classes by the 3rd year license anniversary date
firm license
every business entity (partnerships, corporations, limited liabilities and associations) must obtain a firm license prior to engaging in business as a real estate broker
a sole proprietorship does not need to obtain a firm license but must register any trade names Y55
inactive license
provisional brokers assigned when not supervised by a BIC or upon written request of the licensee; does not have to take continuing education every year; have to take up to 16 hrs of CE to reactivate license; must still pay the $40 license renewal fee Y55-56
license renewal
licenses need to be renewed by June 30 of each year for $40; all active brokers should also complete 8 hrs of CE prior to June 10 Y56
expired license
if $40 annual renewal fee isn't received by June 30, license is expired Y56
license reinstatement
expired < 6 months - must pay $55 reinstatement fee and submit a request to activate form
expired > 6 months (or canceled, revoked or surrendered license) - file a regular license application form with a criminal record report and must prove "current competency in real estate brokerage" Y56
pocket card
each licensee shall carry the pocket card at all times while engaging in brokerage and shall produce it upon request including entry into post licensing and continuing education classes;
qualifying broker of a firm shall retain the firm's renewal card at the firm as proof of firm license Y56
trade name
any name a license uses other than a surname; must file a certificate at the County Register of Deeds and notify the NCREC Y56
broker advertising instructions
1. no 'blind advertising', must state that it has been placed by a broker or brokerage firm, not the principal
2. a provisional broker cannot advertise without obtaining the permission of the BIC
3. broker cannot advertise or display a for sale or for rent sign without consent of the owner that should be given in writing in the listing contract Y57
time share
the right to occupy a unit during 5 or more separate intervals over a period of at least 5 years including renewal options; purchaser has a right to cancel within 5 days of contract execution Y60
trust fund
aka escrow; an account in which only other people's money goes; only full brokers can open brokerage trust accounts; all brokers can open personal trust accounts; needs to be in an FDIC insured bank Y61
trust account rules
1. checks and deposit tickets must have the words "trust account" or "escrow account" printed on them
2. brokerage firm is only required to open one trust account
3. must have a separate trust account for each HOA
4. firm can deposit $100 of personal funds to cover service charges; can never place other personal funds or borrow trust funds
5. firm must have permission in writing to keep funds in a trust bearing account Y62
commingling
the illegal act of a broker placing consumer funds with personal funds B606
class A trust fund
earnest money and security deposits (except cash) should be deposited no later than 3 banking days following acceptance of the offer or the last day the contract is initialed Y63
class B trust fund
rents, settlement proceeds, cash and other trust funds must be deposited no later than 3 banking days after the receipt of the funds. the date of receipt does not count as a banking day Y63
trust funds disbursement rules
when offer is withdrawn or rejected; if transaction is not complete and there is no dispute; if there is a dispute and parties will not sign written agreement to disbursement, begin litigation; if no litigation, notify parties that money will go to clerk of court Y63