Post-301: Broker Relationship & Responsibilities Exam Questions with Correct Answers 100%
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Fiduciary relationship A person who acts for another in a relationship of trust and who is
obligated to act in the other's best interests, placing the other's interests before any self-
interest.
Consequences of violating Agency Law Revocation or suspension of real estate license, civil
liability, loss of commission.
Material facts about the property Facts about the property itself (HVAC system does not
work).
Material facts that relate directly to the property State-approved plans for a four-lane
bypass near the property.
Material facts affecting the principal's ability to complete the transaction Seller is unable to
convey clear title.
Material facts of special importance to a party Current zoning will not permit a buyer's
intended use.
Material fact - Death or murder of a previous tenant No.
Material fact - A convicted sex offender lives nearby No.
Material fact - A gravesite located on a property Yes.
Material fact - Property is believed to be haunted No.
,Material fact - Property is located on an airport approach flight path Yes.
Material fact - Seller is behind on their mortgage payments No.
Withholding detrimental material fact No, the listing broker cannot withhold it from the
buyer.
Refusal to obey seller's instruction Yes, a broker can refuse.
Broker advising on how to take title No.
Listing broker disclosing seller's willingness to accept No.
Buyer agent withholding information from seller No.
Broker acting as a buyer agent No, it does not relieve the broker from disclosing material
facts.
Public record material fact disclosure Yes, the listing broker is required to tell the buyer or
seller.
Limited-service agreement and material facts No, it does not remove the requirement.
Caveat Emptor "Let the Buyer Beware." The SELLER has no affirmative duty to disclose
known facts about the property to prospective buyers.
North Carolina and Caveat Emptor Yes.
, Sellers disclosing material facts in North Carolina No.
Sellers' disclosure on the RPOADS Nothing.
Buyers determining property condition from disclosure form Yes, it is possible they may not
be able to.
Seller liability for non-disclosure None, as long as they don't lie.
Broker marketing property 'as is' No, it does not relieve the broker from discovering and
disclosing material facts.
Broker presenting the Working with Real Estate Agents Disclosure At first substantial
contact (not initial contact).
Information determining substantial contact Confidential information that would harm the
individual in a negotiation.
Review of the WWREA Disclosure No, it is not required in all real estate transactions.
Types of transactions requiring WWREA Disclosure All sales transactions (residential and
commercial). Not required in lease transactions.
Broker's requirement when presenting disclosure Review, request signatures from the buyer
or the seller, and provide a copy of the signed disclosure.
Decision after presenting the disclosure Under what type of agency relationship will the
broker and buyer or seller work together.
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Fiduciary relationship A person who acts for another in a relationship of trust and who is
obligated to act in the other's best interests, placing the other's interests before any self-
interest.
Consequences of violating Agency Law Revocation or suspension of real estate license, civil
liability, loss of commission.
Material facts about the property Facts about the property itself (HVAC system does not
work).
Material facts that relate directly to the property State-approved plans for a four-lane
bypass near the property.
Material facts affecting the principal's ability to complete the transaction Seller is unable to
convey clear title.
Material facts of special importance to a party Current zoning will not permit a buyer's
intended use.
Material fact - Death or murder of a previous tenant No.
Material fact - A convicted sex offender lives nearby No.
Material fact - A gravesite located on a property Yes.
Material fact - Property is believed to be haunted No.
,Material fact - Property is located on an airport approach flight path Yes.
Material fact - Seller is behind on their mortgage payments No.
Withholding detrimental material fact No, the listing broker cannot withhold it from the
buyer.
Refusal to obey seller's instruction Yes, a broker can refuse.
Broker advising on how to take title No.
Listing broker disclosing seller's willingness to accept No.
Buyer agent withholding information from seller No.
Broker acting as a buyer agent No, it does not relieve the broker from disclosing material
facts.
Public record material fact disclosure Yes, the listing broker is required to tell the buyer or
seller.
Limited-service agreement and material facts No, it does not remove the requirement.
Caveat Emptor "Let the Buyer Beware." The SELLER has no affirmative duty to disclose
known facts about the property to prospective buyers.
North Carolina and Caveat Emptor Yes.
, Sellers disclosing material facts in North Carolina No.
Sellers' disclosure on the RPOADS Nothing.
Buyers determining property condition from disclosure form Yes, it is possible they may not
be able to.
Seller liability for non-disclosure None, as long as they don't lie.
Broker marketing property 'as is' No, it does not relieve the broker from discovering and
disclosing material facts.
Broker presenting the Working with Real Estate Agents Disclosure At first substantial
contact (not initial contact).
Information determining substantial contact Confidential information that would harm the
individual in a negotiation.
Review of the WWREA Disclosure No, it is not required in all real estate transactions.
Types of transactions requiring WWREA Disclosure All sales transactions (residential and
commercial). Not required in lease transactions.
Broker's requirement when presenting disclosure Review, request signatures from the buyer
or the seller, and provide a copy of the signed disclosure.
Decision after presenting the disclosure Under what type of agency relationship will the
broker and buyer or seller work together.
