NC REAL ESTATE TEST QUESTIONS
AND ANSWERS ALL CORRECT
A provisional broker acting as a buyer's agent assists a buyer in negotiating the
purchase of a property using the standard 2-T form. The negotiations take place over an
extended period. The buyer withdraws their final offer and no contract forms. How
should the broker handle the due diligence fee and the earnest money checks? -
Answer- A provisional broker must immediately deliver all trust funds to the broker-in-
charge, and the broker-in-charge is strictly responsible. When the negotiations fail, and
no agreement is formed both the due diligence fee and the earnest money go back to
the buyer.
A licensee learns that the seller is willing to accept less than the amount that the
property is listed for. The licensee must keep this confidential: - Answer- when the
licensee represents the seller under exclusive or dual agency
A broker has received multiple offers on a listing, and the seller instructs the broker to
share the highest offer with the other buyers to encourage a bidding war. Which of the
following is TRUE? - Answer- The broker must have the buyer's permission to disclose
the amount of the buyer's offer
A brokerage has advised all agents within the firm to avoid showing property listed by a
company that charges a flat fee commission. Is this practice in compliance with law and
rules? - Answer- No. This is a violation of the federal antitrust laws.
If a seller is not bound to pay compensation to the sole listing agent because the seller
procured the buyer himself, the seller had which kind of listing agreement? - Answer-
Exclusive agency
(An exclusive agency listing agreement does not require the seller to pay a commission
if the seller finds (procures) the buyer. In an open listing, the seller lists the property for
sale with multiple brokers, and the seller only pays a commission to the listing firm that
procures the buyer.)
A broker is responsible for which of the following? - Answer- Verifying the accuracy of
all entries on the settlement statement of which a reasonably prudent broker in the
transaction would have actual knowledge.
, A tenant has repeatedly complained to the landlord about a non-functioning toilet that
does not flush properly, through no fault of the tenant. Which of the following options is
available to the tenant? - Answer- The tenant may stop paying rent and move out.
(This is known as constructive eviction. A tenant may stop paying rent and move out,
then sue the landlord to recover damages. The tenant cannot unilaterally withhold rent
or reduce rent by the cost of the repair. A tenant can elect to stay in the premises,
continue to pay rent and sue the owner for breach of the lease by failing to provide safe,
fit and habitable premises (Residential Rental Agreement Act)
Which of the following statements is CORRECT regarding license status? - Answer- An
initially licensed broker will hold an inactive license until the Commission is informed of
their affiliation with a broker-in-charge.
A buyer agrees to pay a $1,000 due diligence fee to the seller. A legally binding
purchase contract is formed. Before the listing broker can deliver the check to the seller,
the buyer demands the return of the check. The broker refuses. Has the broker acted
appropriately? - Answer- No. The listing broker must follow the buyer's instructions.
(The listing broker must follow the buyer's instructions regarding the earnest money
deposit and due diligence fee unless the money has already been received by the
intended party. Since the due diligence fee was not delivered to the seller, the listing
broker is obligated to follow the buyer's instructions. The listing broker is not required to
follow all of the buyer's instructions.)
An elderly couple owns a 12-unit apartment complex in Atlantic Beach. To cut back on
their management duties, they would like for their adult child to manage the property.
Their child does not have a real estate license, nor is the child an owner of the property.
Which of the following would be an acceptable practice for this property? - Answer- The
parents could hire a professional property management company who could then hire
the child as an unlicensed employee to perform certain tasks
(The child cannot be compensated for managing the property, and that compensation
includes any valuable consideration, such as free rent or other perks. However, if the
child were to be hired as a bonafide, salaried employee of a property management
company, they would be able to perform certain tasks as an unlicensed employee (such
as collecting rents and completing preprinted lease agreements).
A broker is in a multiple offer situation and has reason to believe the buyers will make
higher offers if they know that multiple offers are coming in. Which of the following is
TRUE? - Answer- The broker must have the seller's permission to disclose a multiple
offer situation.
(In a multiple offer situation, a broker must have the sellers permission to disclose
multiple offers. The broker must have the BUYER's permission to disclose the terms of
the buyer's offer to another buyer.)
AND ANSWERS ALL CORRECT
A provisional broker acting as a buyer's agent assists a buyer in negotiating the
purchase of a property using the standard 2-T form. The negotiations take place over an
extended period. The buyer withdraws their final offer and no contract forms. How
should the broker handle the due diligence fee and the earnest money checks? -
Answer- A provisional broker must immediately deliver all trust funds to the broker-in-
charge, and the broker-in-charge is strictly responsible. When the negotiations fail, and
no agreement is formed both the due diligence fee and the earnest money go back to
the buyer.
A licensee learns that the seller is willing to accept less than the amount that the
property is listed for. The licensee must keep this confidential: - Answer- when the
licensee represents the seller under exclusive or dual agency
A broker has received multiple offers on a listing, and the seller instructs the broker to
share the highest offer with the other buyers to encourage a bidding war. Which of the
following is TRUE? - Answer- The broker must have the buyer's permission to disclose
the amount of the buyer's offer
A brokerage has advised all agents within the firm to avoid showing property listed by a
company that charges a flat fee commission. Is this practice in compliance with law and
rules? - Answer- No. This is a violation of the federal antitrust laws.
If a seller is not bound to pay compensation to the sole listing agent because the seller
procured the buyer himself, the seller had which kind of listing agreement? - Answer-
Exclusive agency
(An exclusive agency listing agreement does not require the seller to pay a commission
if the seller finds (procures) the buyer. In an open listing, the seller lists the property for
sale with multiple brokers, and the seller only pays a commission to the listing firm that
procures the buyer.)
A broker is responsible for which of the following? - Answer- Verifying the accuracy of
all entries on the settlement statement of which a reasonably prudent broker in the
transaction would have actual knowledge.
, A tenant has repeatedly complained to the landlord about a non-functioning toilet that
does not flush properly, through no fault of the tenant. Which of the following options is
available to the tenant? - Answer- The tenant may stop paying rent and move out.
(This is known as constructive eviction. A tenant may stop paying rent and move out,
then sue the landlord to recover damages. The tenant cannot unilaterally withhold rent
or reduce rent by the cost of the repair. A tenant can elect to stay in the premises,
continue to pay rent and sue the owner for breach of the lease by failing to provide safe,
fit and habitable premises (Residential Rental Agreement Act)
Which of the following statements is CORRECT regarding license status? - Answer- An
initially licensed broker will hold an inactive license until the Commission is informed of
their affiliation with a broker-in-charge.
A buyer agrees to pay a $1,000 due diligence fee to the seller. A legally binding
purchase contract is formed. Before the listing broker can deliver the check to the seller,
the buyer demands the return of the check. The broker refuses. Has the broker acted
appropriately? - Answer- No. The listing broker must follow the buyer's instructions.
(The listing broker must follow the buyer's instructions regarding the earnest money
deposit and due diligence fee unless the money has already been received by the
intended party. Since the due diligence fee was not delivered to the seller, the listing
broker is obligated to follow the buyer's instructions. The listing broker is not required to
follow all of the buyer's instructions.)
An elderly couple owns a 12-unit apartment complex in Atlantic Beach. To cut back on
their management duties, they would like for their adult child to manage the property.
Their child does not have a real estate license, nor is the child an owner of the property.
Which of the following would be an acceptable practice for this property? - Answer- The
parents could hire a professional property management company who could then hire
the child as an unlicensed employee to perform certain tasks
(The child cannot be compensated for managing the property, and that compensation
includes any valuable consideration, such as free rent or other perks. However, if the
child were to be hired as a bonafide, salaried employee of a property management
company, they would be able to perform certain tasks as an unlicensed employee (such
as collecting rents and completing preprinted lease agreements).
A broker is in a multiple offer situation and has reason to believe the buyers will make
higher offers if they know that multiple offers are coming in. Which of the following is
TRUE? - Answer- The broker must have the seller's permission to disclose a multiple
offer situation.
(In a multiple offer situation, a broker must have the sellers permission to disclose
multiple offers. The broker must have the BUYER's permission to disclose the terms of
the buyer's offer to another buyer.)
