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North Carolina Real Estate Commission NC Real Estate Broker National Sample Questions (Q24-Q29):
NEW QUESTION # 24
An investor bought a small office building for $500,000. They sold it 10 years later for $480,000. What is their percentage of loss?
Answer: D
Explanation:
To calculate the percentage of loss:
Loss = Original Price # Sale Price = $500,000 # $480,000 = $20,000
Percentage loss = ($20,000 ÷ $500,000) × 100 = 4%
Correct answer: A
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NEW QUESTION # 25
Which statement about a North Carolina broker-in-charge (BIC) is TRUE?
Answer: D
Explanation:
To qualify for Broker-in-Charge Eligible status in North Carolina, a broker must have at least three years of full-time brokerage experience (or equivalent part-time experience) within the past five years. Additionally, they must complete the 12-hour Broker-in-Charge Course. Option B is incorrect due to the course length (not
24 hours), and option D is incorrect because a broker-in-charge can only manage one physical office location.
Option C is incorrect as branch offices may also have a separate BIC. Therefore, A is the correct answer.
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NEW QUESTION # 26
A seller wants to net $200,000 from a transaction but will have to pay off a home loan and other fees, at a total cost of $288,800. The seller will also need to pay a 6% commission. What will the property need to sell for?
Answer: A
Explanation:
Let X = sale price.
Seller nets $200,000 and owes $288,800 in fees and costs. A 6% commission will be taken from the sale price.
Net = 0.94X - 288,800 = 200,000
Solving:
0.94X = 488,800
X = $520,000
Therefore, the required sale price is $520,000 - answer C.
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NEW QUESTION # 27
A listing brokerage firm offered a 3% commission split to any broker who could find a buyer for their
$700,000 listing. The seller agreed to pay a 7% commission. A broker from another brokerage firm found a buyer, and the seller accepted their offer of $695,000. What did the listing brokerage firm earn on this transaction?
Answer: C
Explanation:
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.
NEW QUESTION # 28
Which statement about an option contract is TRUE?
Answer: A
Explanation:
An option contract gives the buyer (optionee) the exclusive right, but not the obligation, to purchase a property at a predetermined price within a specified time. The seller (optionor), however, is bound by the terms of the contract and must sell if the buyer exercises the option. Consideration (often a non-refundable option fee) is required to make the option enforceable. Therefore, the seller is obligated to sell if the buyer chooses to exercise the option, making statement B true.
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NEW QUESTION # 29
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