North Carolina Real Estate Broker Exam — All Questions

A North Carolina broker receives an earnest money deposit. Where must those funds be held?

• a.In the broker's personal checking account
• b.In a trust or escrow account separate from the broker's own funds✓
• c.In the broker-in-charge's investment account
• d.In cash in the office safe until closing

North Carolina License Law requires client and customer money such as earnest money to be deposited in a trust or escrow account kept separate from the broker's personal or business funds. Commingling those funds with the broker's own money is prohibited and can lead to discipline. Holding deposits in cash or a personal account fails the safeguarding and record-keeping requirements the Commission enforces.

In North Carolina, what is the primary role of the broker-in-charge (BIC) at a real estate office?

• a.To personally close every transaction handled by the office
• b.To guarantee commissions to all affiliated brokers
• c.To supervise the brokers and the trust accounting at that office location✓
• d.To act as the sole agent for all clients of the firm

The broker-in-charge is responsible for supervising the brokers affiliated with an office and overseeing the office's trust account and advertising. The BIC does not have to personally close every deal or serve as agent for every client. The BIC also does not guarantee other brokers' commissions; the role is one of oversight and compliance, not payment guarantees.