Before you read
Test yourself first: 5 questions
Question 1 of 5
In a North Carolina brokerage, who is responsible for the proper handling and oversight of the firm's trust (escrow) account?
Answer: B. The broker-in-charge is responsible for supervising the firm and ensuring proper handling of trust funds in the firm's trust account.
Question 2 of 5
A broker-in-charge fails to properly supervise a provisional broker, who then mishandles trust funds. Under North Carolina law, the broker-in-charge:
Answer: B. A broker-in-charge is responsible for supervising affiliated provisional brokers and for the office's trust account handling, advertising, and recordkeeping. Failure to adequately supervise is itself a disciplinable offense, independent of whether the BIC personally executed the transaction.
Question 3 of 5
What is the primary role of a Broker-in-Charge (BIC) at a North Carolina real estate office?
Answer: A. The Broker-in-Charge is responsible for supervising affiliated brokers and ensuring proper handling of trust funds, advertising, and compliance at the office.
Question 4 of 5
How must a North Carolina broker handle earnest money and other client funds received in a transaction?
Answer: A. License Law requires client funds such as earnest money to be deposited into a trust or escrow account and kept separate from the broker's own funds; commingling is prohibited.
Question 5 of 5
Which of the following actions by a North Carolina broker would most clearly constitute a license-law violation subject to disciplinary action by the Commission?
Answer: A. Commingling client funds with a broker's own money is prohibited. Earnest money and other trust funds must be deposited into a designated trust or escrow account, not the broker's personal or operating account. The other choices describe proper, required, or recommended practice.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
The Broker-in-Charge is responsible for proper handling of these funds. Licenses must be renewed annually, and to remain on active status brokers must complete the required continuing education each license year.
Handling Escrow Funds and License Renewal in North Carolina: FAQs
Is Handling Escrow Funds and License Renewal in North Carolina on the real estate exam?
Yes. State License Law is a scored domain on the North Carolina real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does North Carolina test this differently?
North Carolina applies its own license law on top of the national portion. This page covers the North Carolina rules specifically, which is what the state section of your exam tests.
