301 NC POST LICENSING PRACTICE EXAM
2026 CERTIFICATION PAPER VERIFIED
SOLUTIONS GRADED A+
⩥ What is the definition of a fiduciary relationship?
Answer: A person who acts for another in a relationship of trust,
obligated to act in the other's best interests.
⩥ Does violating Agency Law also violate Real Estate License Law?
Answer: Yes.
⩥ What are some possible consequences of violating Agency Law?
Answer: Revocation or suspension of real estate license, civil liability,
loss of commission.
⩥ Can the Real Estate Commission fine a broker for violating Real
Estate License Law?
Answer: No.
⩥ What are the four categories of material facts?
Answer: 1. Facts about the property itself (e.g., HVAC system does not
work). 2. Facts that relate directly to the property (e.g., state approved
plans for a four-lane bypass). 3. Facts directly affecting the principal's
,ability to complete the transaction (e.g., seller unable to convey clear
title). 4. Facts known to be of special importance to a party (e.g., current
zoning will not permit intended use).
⩥ Is the death or murder of a previous tenant on the property a material
fact?
Answer: No.
⩥ Is a gravesite located on a property a material fact?
Answer: Yes.
⩥ Is property located in an airport approach flight path a material fact?
Answer: Yes.
⩥ If a material fact is detrimental to the seller, can the listing broker
withhold it from the buyer?
Answer: No.
⩥ Can a broker refuse to obey a seller client's instruction to withhold a
material fact about the property?
Answer: Yes.
⩥ Can a broker advise a buyer on how to take title to the property?
, Answer: No.
⩥ Can a listing broker disclose to a buyer how much the seller is willing
to accept for the property?
Answer: No.
⩥ Can a buyer agent withhold information from the seller about the
buyer's inability to obtain funds?
Answer: No.
⩥ If the broker is acting as a buyer agent, does that relieve the broker
from disclosing material facts to the seller?
Answer: No.
⩥ If a material fact is a matter of public record, is the listing broker still
required to tell the buyer or seller?
Answer: Yes.
⩥ Does using a limited-service agreement remove the requirement of the
broker to discover and disclose material facts?
Answer: No.
⩥ What does Caveat Emptor mean?
2026 CERTIFICATION PAPER VERIFIED
SOLUTIONS GRADED A+
⩥ What is the definition of a fiduciary relationship?
Answer: A person who acts for another in a relationship of trust,
obligated to act in the other's best interests.
⩥ Does violating Agency Law also violate Real Estate License Law?
Answer: Yes.
⩥ What are some possible consequences of violating Agency Law?
Answer: Revocation or suspension of real estate license, civil liability,
loss of commission.
⩥ Can the Real Estate Commission fine a broker for violating Real
Estate License Law?
Answer: No.
⩥ What are the four categories of material facts?
Answer: 1. Facts about the property itself (e.g., HVAC system does not
work). 2. Facts that relate directly to the property (e.g., state approved
plans for a four-lane bypass). 3. Facts directly affecting the principal's
,ability to complete the transaction (e.g., seller unable to convey clear
title). 4. Facts known to be of special importance to a party (e.g., current
zoning will not permit intended use).
⩥ Is the death or murder of a previous tenant on the property a material
fact?
Answer: No.
⩥ Is a gravesite located on a property a material fact?
Answer: Yes.
⩥ Is property located in an airport approach flight path a material fact?
Answer: Yes.
⩥ If a material fact is detrimental to the seller, can the listing broker
withhold it from the buyer?
Answer: No.
⩥ Can a broker refuse to obey a seller client's instruction to withhold a
material fact about the property?
Answer: Yes.
⩥ Can a broker advise a buyer on how to take title to the property?
, Answer: No.
⩥ Can a listing broker disclose to a buyer how much the seller is willing
to accept for the property?
Answer: No.
⩥ Can a buyer agent withhold information from the seller about the
buyer's inability to obtain funds?
Answer: No.
⩥ If the broker is acting as a buyer agent, does that relieve the broker
from disclosing material facts to the seller?
Answer: No.
⩥ If a material fact is a matter of public record, is the listing broker still
required to tell the buyer or seller?
Answer: Yes.
⩥ Does using a limited-service agreement remove the requirement of the
broker to discover and disclose material facts?
Answer: No.
⩥ What does Caveat Emptor mean?
