STANDARD NCREC-BROKER-N ANSWERS | NCREC-BROKER-N ACTUAL TEST

Standard NCREC-Broker-N Answers | NCREC-Broker-N Actual Test

Standard NCREC-Broker-N Answers | NCREC-Broker-N Actual Test

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North Carolina Real Estate Commission NC Real Estate Broker National Sample Questions (Q49-Q54):

NEW QUESTION # 49
A property owner owns 150 acres of land. Bordering one side of the property is a non-navigable river. Which statement about the owner's ownership rights is TRUE?

  • A. The owner has littoral, not riparian rights.
  • B. The owner owns the water and can build a dam to restrict its flow.
  • C. The owner's land ownership rights extend to the center of the river.
  • D. The owner can stop other people from using the river.

Answer: C

Explanation:
In North Carolina, if a property borders a non-navigable river or stream, the property owner holds riparian rights. This means the owner's property extends to the centerline of the watercourse. Littoral rights, by contrast, apply to properties bordering large, navigable bodies of water such as oceans and lakes. The owner does not own the water and cannot restrict its natural flow or public use where applicable. Therefore, the correct answer is C.
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NEW QUESTION # 50
It would be considered the unauthorized practice of law for a North Carolina real estate broker to:

  • A. refer a client to an attorney to draft an addendum if there are special contract provisions.
  • B. modify an electronically generated preprinted form by marking a change requested by a client.
  • C. draft an addendum to an offer if there are any special contract provisions.
  • D. complete a preprinted offer or sales contract form that has been drafted by an attorney.

Answer: C

Explanation:
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.


NEW QUESTION # 51
A homeowner has been trying to sell their house for some time, but buyers seem to be turned off by the odor from a nearby chicken farm. This is an example of:

  • A. physical deterioration
  • B. external obsolescence
  • C. economic depreciation
  • D. functional obsolescence

Answer: B

Explanation:
External obsolescence refers to a loss in property value caused by external factors beyond the property owner' s control. These could include undesirable neighboring properties, economic shifts, or environmental conditions. In this case, the unpleasant odor from the nearby chicken farm is an environmental factor reducing buyer interest. Therefore, the correct answer is B.


NEW QUESTION # 52
If a buyer defaults on a purchase agreement just prior to settlement, what clause in the contract would likely allow the seller to keep the earnest money deposit?

  • A. Liquidated damages
  • B. Punitive damages
  • C. Compensatory damages
  • D. Actual damages

Answer: A

Explanation:
Liquidated damages refer to a pre-agreed amount of compensation (often the earnest money deposit) that one party is entitled to retain in the event the other party breaches the contract. In North Carolina, the standard Offer to Purchase and Contract includes provisions stating that if a buyer breaches after due diligence, the seller may retain the earnest money as liquidated damages. Therefore, the correct answer is C.
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NEW QUESTION # 53
According to the North Carolina Real Estate Commission Rules, what must be included in a written agency agreement?

  • A. The expiration date of the broker's license
  • B. The broker's license number
  • C. An automatic renewal clause
  • D. A broker protection clause

Answer: B

Explanation:
According to 21 NCAC 58A .0104(a), a written agency agreement in North Carolina must include the broker' s license number and a definite expiration date. These are required by the Commission to ensure regulatory clarity and accountability. A broker protection clause is optional and negotiated between parties. Automatic renewal clauses are prohibited in listing agreements. Therefore, the correct and required component is the broker's license number.
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NEW QUESTION # 54
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