Before you read
Test yourself first: 5 questions
Question 1 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 2 of 5
Under North Carolina rules, who bears ultimate responsibility for ensuring the firm's trust account is properly maintained, reconciled, and not misused?
Answer: B. The broker-in-charge is responsible for the supervision of the firm's trust accounts and brokerage operations. While an accountant may assist, accountability for proper trust-account handling, recordkeeping, and reconciliation rests with the BIC.
Question 3 of 5
Which records is a North Carolina broker required to maintain for trust money received and disbursed?
Answer: B. NC requires both a journal (chronological record of all trust receipts and disbursements) and individual ledgers for each property or beneficial owner showing the running balance. These, with bank records and reconciliations, form the required trust-account recordkeeping.
Question 4 of 5
In North Carolina, who is required to designate a broker-in-charge?
Answer: B. Each real estate office or firm where brokerage is conducted must have a designated broker-in-charge responsible for supervising affiliated brokers and overseeing trust accounts, advertising, and compliance.
Question 5 of 5
In a North Carolina real-estate advertisement, what does the Commission require regarding the firm's identity?
Answer: B. NC requires that advertising disclose the name of the firm or sole proprietorship under which the broker operates so the public can identify the responsible brokerage. Advertising only an individual's name without the firm can be misleading and violates the rules.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Advertising must not be false or misleading, and brokers must clearly disclose their licensed status when buying, selling, or advertising their own property. North Carolina also requires brokers to keep complete transaction and trust-account records, retaining them for three years so the Commission can audit compliance.
North Carolina Advertising & Record-Keeping Rules: FAQs
Is North Carolina Advertising & Record-Keeping Rules 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.
