Pass the North Carolina Real Estate Commission Real Estate Broker NCREC-Broker-N Questions and answers with CertsForce

When using more than one approach to value (sales comparison, cost, and income), an appraiser must reconcile the results, weighting each method based on its relevance to the subject property. The original purchase price and average of all comps are not directly used in determining value. The cost to update may factor into adjustments but is not a primary valuation method. Therefore, the correct answer is D.

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The total commission earned was 7% of the final sales price ($695,000 × 0.07 = $48,650).

The cooperating (buyer’s) broker received 3% ($695,000 × 0.03 = $20,850).

The listing brokerage firm retained the difference:

$48,650 – $20,850 = $27,800.

So, the listing firm earned $27,800 — answer C.

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In North Carolina, only a broker-in-charge (BIC) or firm can receive compensation directly for brokerage services. All brokers, whether provisional or not, must be paid through their affiliated BIC or firm. In this case, the buyer agent is affiliated with ABC Realty, so the firm or its BIC receives the compensation—typically from XYZ Realty’s firm via the co-brokerage agreement—and then disburses the earned commission to the broker. Therefore, the correct answer is D.

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In a net listing, the seller agrees to receive a fixed amount from the sale, and the broker retains any amount above that as commission. Net listings are legal but discouraged and closely regulated in North Carolina due to the potential for conflicts of interest and ethical concerns. The broker must disclose the actual selling price and ensure the arrangement is fully transparent. Therefore, the correct answer is C.

The seller’s net proceeds are the total credits due to the seller (such as the sale price) minus all debits (such as mortgage payoff, commissions, taxes, and other closing costs). Therefore, the formula is:

Net Proceeds = Seller's Credits − Seller's Debits.

Correct answer: D.

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Tortious interference occurs when a person intentionally damages another party's contractual or business relationships. In real estate, this can happen if a broker actively tries to lure away a client who is currently under an exclusive agreement with another broker. It is an unethical and potentially illegal act. Therefore, the correct answer is A.

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In North Carolina, a broker may not disclose the price or terms of one buyer’s offer to another party without the express permission of the party who made the offer. This ensures fair dealing and prevents misuse of confidential offer terms. While a seller can instruct a broker to disclose that there are multiple offers, the details (like price, due diligence fee, etc.) require written consent from the offeror. Therefore, the correct answer is B.

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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.

According to the North Carolina Real Estate Commission, brokers must retain records related to a real estate transaction for a minimum of three years from the date of closing or termination of the transaction. These records include contracts, agency agreements, disclosures, and correspondence. Therefore, C is the correct answer.

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A mortgagee's (lender’s) title insurance policy protects the lender from financial loss caused by title defects that were not discovered before the mortgage was issued. The policy coverage lasts until the loan is repaid. The borrower pays a one-time premium at closing—it is not part of the monthly mortgage. Claims are based on the unpaid balance of the loan, not necessarily the full loan amount. Therefore, the correct answer is D.

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